Page 28 THE VILLADOM TIMES I, II, III & IV • December 21, 2011 NO LENDER FEES! Mike’s Mortgage Misconceptions: REFINANCE NOW WITH LESSON #1 Q : I have been paying my mortgage for 8 yrs now. I am against the idea of going ‘backward’ on the term of my loan. I want to finish paying the loan off by the time I retire (for example). How can I take advantage of the low rates without sacrificing the progress I’ve made toward getting to the finish line? A : 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: 8 years into a $300,000 mortgage @ 5.125%, your payment is $1,633/mo. Your principal balance is $258,311 and you have 22 yrs left. The bank is offering 3.875% for 30 yrs 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: You CAN refinance without going backward! 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. Pay $1460 (for example) per month toward this new loan (despite the fact that the bill says $1214 every month) and you will finish in less than 22 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 ½ years, saving $68,977! 30 yr fixed: rate 3.875% 0 points APR 3.94% 15 yr fixed: rate 3.25% 0 points APR 3.34% Call ������RAMSEY�� today. ���������������� Or apply now at www.ghmcramsey.com. All rate/APR information based on a minimum loan amount of $250,000 and a minimum home value of $416,670, >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