The False Myths of Mortgage

[Adam in CO]

Mortgage Myth: Never Refinance Your Mortgage
If you're a conventional thinker, you might be one of those people who feels the only mortgage for you is a traditional 30-year fixed-rate mortgage. Fine. But you may also think once the loan has been closed, you shouldn't have to think--or worry--about it ever again. But, like everything, times change, and if you're still treating your mortgage the old-school way, then you're probably in for a big surprise.

MYTH: YOU SHOULD NEVER REFINANCE YOUR MORTGAGE FALSE! Sure, there are times when you should leave your mortgage alone, but there are also times when refinancing could reap lots of rewards. Managing your mortgage wisely should be a part of how you manage your assets.
Lowering Your Monthly Payment
One of the biggest reasons many people refinance is to lower their interest rate which, subsequently, lowers their monthly payment. Let's say you got a loan with an interest rate at
7.5 percent; your loan amount was $100,000; and it's a traditional 30-year fixed. Your payment (without taxes and insurance) would be just under $700. Now, let's say rates have dropped down to 6.5 percent. If you were to refinance, your payment would drop to about $632. Now that you've refinanced, you're keeping nearly $70 more in your pocket a month that you could use toward other bills or just extra spending money. Over a year, that adds up to $840! Perhaps you can finally take that vacation to the Bahamas after all.
Refinancing from a Fixed to an ARM
Not interested in lowering your rate and payment? Fine. Let's say you have a home that you bought with a 30-year fixed-rate mortgage. But what if you have to move a lot? Many people in the military have to relocate themselves and their families quite often. This also goes for some people in sales where they get transferred often. Even if you don't have to move a lot, the average American family moves every seven to nine years. Keeping a 30-year fixed rate mortgage doesn't make as much sense in these types of situations as having a shorter-term adjustable rate mortgage (ARM) because the rates for a 30-year fixed are often higher which means you're paying more. Why pay more when you don't have to?
Refinancing from an ARM to a Fixed
Let's say you do have an ARM. Why would you need to refinance to a fixed-rate mortgage? Well, if rates are continually rising, as they were between 2004 and 2006, you'd want to keep your rate from increasing too high. Otherwise, you face increases in your monthly payment. In this case, you'd want to refinance to a fixed rate to avoid rising rates and payments.

[lvs]

Slow work day?? Everyone is gearing up for the next CO storm.

[K9sH3]

Adam, being that I don't know ya. I am guessing that your a Mortgage broker? or you have to much idle time at work.
But that was great info either way, I like reading about that.

[DDWH]

so.........................I guess 5% locked is a good deal then?

[bparker]

lol i read every single one of his posts..

knowlege/advice is a good thing..

I took a traditional 30yr fixed @ 5.25% I am not going to jack with that..

Was my first house too

[Adam in CO]

Originally Posted by K9sH3

Adam, being that I don't know ya. I am guessing that your a Mortgage broker? or you have to much idle time at work.
But that was great info either way, I like reading about that.

You nailed it. Not really slow, though. I just happen to be privvy to infomation njot available to the GP, so I try to share everything I can.

[Adam in CO]

Originally Posted by DDWH

so.........................I guess 5% locked is a good deal then?

Yup. If that's a 30 year rate I wouldn't screw with it.

[Adam in CO]

Originally Posted by bparker

lol i read every single one of his posts..

knowlege/advice is a good thing..

I took a traditional 30yr fixed @ 5.25% I am not going to jack with that..

Was my first house too

That is a good idea, emergenices aside. I think we nailed down 4.875 on our OO prop a few years back.

[SnakeH2]

Adam, Can you view current rates in the San Antonio area? I got a qoute yesterday at 5.625 for a 30 year fixed. I'm getting near a 30 lock period, but since it's new construction I want to be sure on completion.

I know the trend looks flat or downward over the next few weeks, so I'm not real worried right now.

Snake

[Adam in CO]

Originally Posted by SnakeH2

Adam, Can you view current rates in the San Antonio area? I got a qoute yesterday at 5.625 for a 30 year fixed. I'm getting near a 30 lock period, but since it's new construction I want to be sure on completion.

I know the trend looks flat or downward over the next few weeks, so I'm not real worried right now.

Snake

Snake,

I am a national charter and do write paper in TX, so yes. 5.625 on a 30yr with a 30 day lock is a good deal. Depending on closing costs, impounds, etc., I would probably take it.

[Adam in CO]

Always feel free to ask questions. I would prefer people in general get good data so they can make informed decisions.

[SnakeH2]

Thanks

Closing costs...that's a fun one to sift through. I know most the costs are BS, and thankfully, my broker acknowledges that.

[Adam in CO]

Originally Posted by SnakeH2

Thanks

Closing costs...that's a fun one to sift through. I know most the costs are BS, and thankfully, my broker acknowledges that.

That's good. A major part of the job is to keep the title, lender, appraiser hands out of your pockets. Gotta watch out for every one of clients' dollars or we wouldn't be doing our jobs.

[CO Hummer]

Originally Posted by Adam in CO

That's good. A major part of the job is to keep the title, lender, appraiser hands out of your pockets. Gotta watch out for every one of clients' dollars or we wouldn't be doing our jobs.

My broker sends over hot women from the title company to complete the paper work!

[Adam in CO]

Originally Posted by CO Hummer

My broker sends over hot women from the title company to complete the paper work!

I like Erin, too. She used to be a model.
http://www.jurgita.com/models-id29789.html