Wednesday, December 14, 2011

How Small Changes Make Big Difference

It's no secret that mortgage rates are at record lows. But according to many so called "gurus", it only makes sense to refinance if  you can save x or y amount of dollars.  Don't let all the guru noise or internet babble discourage you from checking things out for your own situation.

For example, consider someone who just purchased a home or refinanced their $200,000 mortgage several months ago  They might have a mortgage rate of 4.75%. Many "experts" would say its not worth it to refinance unless you can lower your rate by a full 1% without paying points or closing costs.  However, what if they paid $3,000 in points and closing costs to reduce the rate to 3.75% and bumped up thier mortgage balance to $203,000?   Here is wat thier situation might look like:

Old Payment = $1,043.29

New Payment = $940.12

Payment Savings = $103.17

If they saved the $103.17 @ 4.5% they will have:

$6,782     in    5 years
$15,271   in    10 years
$25,897   in    15 years
$39,210   in    20 years
$76,698   in    30 years

WOW !!

If this represented your situation, and you listened to all the "gurus" telling you not to bother refinancing, you would actually LOSE up to $76,698! Do yourself a favor. Put that money back in your pocket by calling me today!  Although I am not promising that you will save exactly this much money, I will help you save as much money as possible in your situation.

Don Lambert
Accutrust Mortgage Inc
1107 Pleasant Street
Fall River MA 02723
(508) 646-6650
NMLS # 2409, MA-MB2409, ME-CSO7814, NH 10349MBR,
VT-1050MB, CT-14666, RI-20047100LB

No comments:

Post a Comment