Posts Tagged ‘Refinance’
New 50/50 Mortgage – The Best of Both Worlds
One of my lenders has come out with a new product.....a 50/50 mortgage. 50% of the mortgage is variable and 50% is fixed. Although this is not a new concept in the mortgage industry, the fact that the variable portion is prime plus .40 (currently 2.9%) is one of the lowest variable rates around at the moment. Combined with a fixed rate of 4.09% your effective rate is only 3.38%! For those of you who are sitting on the fence about whether to choose a variable or a fixed rate, this could be the perfect solution for you. You get the security of the fixed rate and you still get to take advantage of variable rates while they remain low for the next year or so. So who is is this mortgage ideally suited for? Customers who are unsure whether to go Variable or Fixed. This product eliminates the biggest dilemma facing mortgage borrowers in today’s economy. Customers who want a low interest rate and are more risk-averse than a typical variable rate client. The weighted average interest rate on this mortgage is approximately 3.38% given today’s current pricing! And only 50% of the mortgage is subject to interest rate risk. Customers who want added ...
Are You Having Trouble Making Your Mortgage Payments?
In today's economy with rising unemployment and job losses, many families are finding it increasingly difficult to make their monthly mortgage payments. Most people run into trouble by not addressing the problem as soon as it arises resulting in their missed mortgage payments and penalties quickly adding up. Fear and embarrassment keep most from finding the help they need. Many are afraid the lender will automatically take their home if they find out they are in financial difficulty. There are a few simple things you can do to help ease the financial burden and set yourself up for financial success. Contact your bank as soon as possible Putting your head in the sand and hoping the financial difficulty will pass is not the answer. You need to be proactive. Even if you haven't missed a mortgage payment yet, but the writing is on the wall, speak with your lender about the options available to you. Most lenders will be more than happy to work with you in order to avoid missed mortgage payments. They might be willing to increase your amortization to lower your monthly payments and make them more affordable. In extreme cases they might even be willing to structure a ...
Refinance Tips
With today's super low interest rates many people are considering getting out of their current mortgage to take advantage of lower rates, save a few dollars on their payment each month and pay less interest over the life of the mortgage. As a broker I actively monitor my clients mortgages and when appropriate I suggest opportunities where a refinance would benefit the client. However, you need to be careful that refinancing does not put you in a worse financial position....it doesn't make sense for everyone or every mortgage. Let's talk about a few things that you need to look out for. Penalties- This is the biggest expense when refinancing and will make the difference between success and disaster. When you originally got your mortgage the commitment clearly stated the penalty you would incur if you got out of your mortgage early. If you don't have the document or can't find the information, call your mortgage provider. There are usually two methods of calculating a penalty. The first is three month's interest and the second is called interest rate differential (IRD). Unfortunately for you the lender will use the higher of the two methods. Let's look at an example to show the difference. ...
GREAT 3 YEAR RATE
Take advantage of my low 3 year fixed rate at 3.75%!!! You can save money on your monthly payments. Ask me how you might qualify to have the new lender cover the penalty at your old lender.
