Page 8 THE VILLADOM TIMES II • December 7, 2011 NO LENDER FEES! Mike’s Mortgage Misconceptions: REFINANCE NOW WITH LESSON #1 You control your term. going ‘backward’ on the term of my loan. I want to finish paying the loan off by the date I anticipate my first child will be going off to college (for example). How can I take advantage of the low rates without sacrificing the progress I’ve made toward getting to the finish line? : Term is often the most misunderstood aspect of conventional mortgages. If you owe $250,000 today and you have $250,000 in the bank that could, conceivably, be paid toward your mortgage, regardless of how many years your lender says you have remaining, your term is one day – should you choose to make it so. Simply send in that big check. In short, YOU CONTROL YOUR TERM. Let’s look at a more real world example to bring the point home: You are 8 years into a $300,000 mortgage @ 5.125%. Your monthly payment is $1,633. Your principal balance is $258,311 and you have 22 years left. The bank is offering 3.875% for 30 years and, while the $1,214 payment they’re offering is enticing, you are adamant about the fact that you do not want to go backward. What to do? Solution: DEFINITELY refinance to the 30 year loan at the lower rate. Then, set up your checking account to automatically pay more than the $1214 each month so as to ‘control’ your term. If you choose to pay $1460 per month toward this new loan (despite the fact that the bill says $1214 every month) you will finish in less than 21.89 years – saving $173 per month ($45,672 total!) versus current. Alternatively, you could pay $1633 per month toward the new loan and you’d finish in 18.48 years, saving $68,977! Q : I have been paying on my mortgage for 8 years. I am against the idea of 30 yr fixed: rate 3.875% 0 points APR 3.94% 15 yr fixed: rate 3.25% 0 points APR 3.34% A Apply now at www.ghmcramsey.com. Compare our rates to Hudson City or Valley National And consider that they will have closing costs as well. Call ������RAMSEY�� today. You will not regret having made the call. All rate/APR information based on a $300,000 loan, $500,000 appraised value, >740 FICO, SFR NJ owner occupied property or 2nd home. Guaranteed Home Mortgage Co. Inc. 298295 One Park Way 2nd Floor Upper Saddle River, NJ 07458 Licensed Mortgage Banker- NJ Dept. of Banking and Insurance. Equal Opportunity Lender. Not all borrowers will Qualify. Mike Blasius NMLS# 39640