By Tammy Engel
Mortgage Advisor
Getting great results
Mortgage Matters
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They told us the refinance market was over, but maybe they spoke too soon. Here are four case studies of your neighbors taking advantage of current market values and rates.
Family A bought their first home in 2011 using a no-down-payment program. Since that time they’ve accrued a car loan and a small credit card balance. Using a no-cost refinance loan at the same rate they’ve been paying, they reduced their monthly expenses by $439 per month.
Family B has owned their home for over 15 years, and credit card debt was eating into their monthly budget. Ten years back a parent had Alzheimer’s disease so their balances had grown in trying to manage two households. We analyzed the current blended rate and monthly expense, and decided on a consolidation loan that lowered not only the monthly outlay by $625 per month, but the rate dropped, too. Best yet, this family will keep making the house payment they were already used to making, so will pay off the new mortgage in fifteen years!
Family C has only owned their home for two years, and a divorce situation drove up their consumer balances. We paid off thirteen accounts and saved them over $600 per month in expense (not to mention the drama of making all those payments). This refinance, too, resulted in a dramatic decrease in blended interest rate, using a no-cost fixed rate to the borrower’s benefit.
Family D is in their second home, which they bought three years ago. A break in employment caused their debts to increase, and they were paying significant mortgage insurance on their acquisition loan. We were able to remove the mortgage insurance and scare up enough cash out to knock out their debts – all while keeping their monthly house payment exactly the same and saving $488 per month on their bills. Their plan is to set that money aside each month to create a savings account for a rainy-day emergency.
Are you paying mortgage insurance on your current home loan? Could you use relief from monthly payments? If so, now might be a great time to investigate your refinance options and see if there is a financially sound way to restructure your debt.
Tammy Engel is your local Mortgage Advisor, and has been working for your best interest since 1990. Contact her at 661/822-7325 for help with purchase, refinance, and reverse mortgage.
