February 15, 2012 THE VILLADOM TIMES II & III • Page 13 NO LENDER FEES! Mike’s Mortgage Misconceptions: REFINANCE WITH LESSON #1 : 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? Q 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% Compare our rates to Hudson City or Valley National and consider that they may have closing costs. Call ������RAMSEY�� today. You will not regret having made the call. Or apply now at www.ghmcramsey.com, or email mblasius@ghmc.com with questions/inquiries. *All rate/APR information is based on a minimum loan amount of $250,000 and a minimum home value of $416,670, >700 FICO, SFR NJ owner occupied property or 2nd home. The expressed rates are the rates at which such loans are currently being closed or committed. The rates are subject to change. Guaranteed Home Mortgage Co. Inc. 298295 One Park Way 2nd Floor Upper Saddle River, NJ 07458 Licensed Mortgage Banker -- N.J. Dept. of Banking and Insurance. Equal Opportunity Lender. Not all borrowers will Qualify. Mike Blasius NMLS# 39640