Page 6 THE VILLADOM TIMES III • May 23, 2012
NO LENDER FEES!
Mike’s Mortgage Misconceptions:
REFINANCE WITH
LESSON #2
rate. I have a 4.75% rate now and rates are being advertised below 4%. Is it worth refinancing?
Q : I have long heard that I should not refinance unless I can save 1% or more in A : This is not necessarily true. In reality, the decision to refinance depends on
a few things: the amount of money that you owe, the length of time you intend to occupy the property, and the amount of money that would motivate you to act. Specifically, if you only owe $220,000 on a 30 yr. fixed loan at 4.875% that you obtained in 2007, moving to 3.875% would save you over $200 per month. If your mortgage is large enough, you could save $462 per month even if your rate is reduced by 0.75%. The chart below shows the estimated savings you may be able to achieve through refinancing. Estimated Savings Analysis 0.50% 0.75% Rate Reduction $100,000 $56 $69 $200,000 $154 $183 $300,000 $235 $279 $400,000 $312 371 $500,000 $389 $462 1.00% $84 $212 $322 $429 $534 1.25% $98 $240 $365 $485 $605
30 yr fixed: * rate 3.75% 0 points APR 3.765%
Current Loan Balance
Assumptions: The current loan is a 30 yr. fixed rate mortgage @ 4.875% obtained five years ago. Please contact me today to discuss how much money you may be able to save. The call and the information is always free. Let me help get you the information you need to make a decision about whether refinancing is worth it for you. The conversation takes less than five minutes and you will not need to provide personal information other than your name and address and the estimated value of your home and principal balance.
15 yr fixed: * rate 3.125% 0 points APR 3.149%
Call ������RAMSEY�� today. � ����������������
Or apply now at www.ghmcramsey.com, or email mblasius@ghmc.com with questions/inquiries.
Loan offer is based on a $300,000 loan, $500,000 appraised value with >740 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.
Mike Blasius NMLS# 39640
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.