July 28, 2011
Owning a home is not only a dream come true – but a big financial investment. With rates at historic lows, savvy homeowners can save thousands – sometimes hundreds of thousands – by refinancing their current loan. Here are some advantages:
- Lower current monthly payments
- Pay off your mortgage faster
- Save money over the life of your loan
- Reduce fluctuating interest rate risk by converting from an adjustable rate to a fixed rate
- Possibly eliminate Private Mortgage Insurance
- Increase monthly cash flow to use for other major expenses or consolidate debts
Below is an illustration of the monthly savings that can be generated by refinancing into a lower rate – $188 a month or $2,256 a year!
| |
Old Loan |
New Loan |
| Interest Rate |
6.5% / 6.715% APR |
4.5% / 4.691 |
| Current Balance* |
$150,000 |
$150,000 |
| Payment (Principal + Interest)* |
$948.00 |
$760.0 |
*This example assumes a 20% down payment on the original loan.
Below is an illustration of the savings that can be generated by refinancing into a shorter term – $75,393 over the life of the loan!
| |
Old Loan – 30 Year Term |
New Loan – 15 year Term |
| Interest Rate |
4.5% / 4.691% APR |
4.0% / 4.179% |
| Current Balance* |
$150,000 |
$150,000 |
| Payment (Principal + Interest)* |
$760.00 |
$760.0 |
| Finance Charge |
$126,912.26 |
$51,518.96 |
Contact a Home Team Mortgage loan officer today and discover what your refinance savings could be! hometeamortgage.com
Tom Parker is president of Home Team Mortgage, Ebby Halliday’s in-house mortgage source, and a regular contributor to the Ebby Blog. Contact Tom at tom@tlpoffice.com or 972-665-1900.
May 26, 2011
You’re in the midst of buying your new home and find yourself with a lot on your to-do list. The basic requirements including utilities, phone, and internet are often joined with new furniture, new décor, and a general “out with the old and in with the new” mentality. It’s an exciting time and it’s easy to get carried away, but before you do, read the following list of do’s and don’ts to ensure your credit is protected—and so is your loan approval!
DON’T:
- Apply for any new credit
- Pay off collections or charge-offs
- Close credit card accounts
- Max out existing credit cards
- Consolidate debt
- Pay late on any accounts
- Change employers, move or change your address
- Dispute anything on your credit report
Avoiding these items will help preserve your immediate credit and minimize the risk of your credit score dropping.
DO:
- Keep in touch with your loan consultant
- Watch your credit closely
- Stay current on all existing accounts
- Shop for hazard insurance early
These steps will give you peace of mind and contribute to a much smoother buying experience and an on-time closing.
Following these simple suggestions could make the difference between a loan approval and denial. Contact your Home Team Mortgage loan officer for more guidance and gain peace of mind!
hometeammortgage.com
Tom Parker is president of Home Team Mortgage, Ebby Halliday’s in-house mortgage source, and a regular contributor to the Ebby Blog. Contact Tom at tom@tlpoffice.com or 972-665-1900.
