Page 6 THE VILLADOM TIMES III & IV • December 7, 2011 NO LENDER FEES! Mike’s Mortgage Misconceptions: REFINANCE NOW WITH LESSON #1 Q You control your term. : I have been paying on my mortgage for 8 years. I am against the idea of 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? 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! 30 yr fixed: rate 3.875% 0 points APR 3.94% 15 yr fixed: rate 3.25% 0 points APR 3.34% A : Term is often the most misunderstood aspect of conventional mortgages. 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