Financing
| Now is the time to refinance your residential mortgage |
| Published Monday, January 5, 2009 10:00 am |
This may present an opportunity for those qualified to either convert from variable rate mortgages to what are now relatively low fixed rate loans. Below is an indication of where mortgage rates are as of yesterday, but are subject to change depending on market conditions:
Fannie Mae/ Freddie Mac Conforming Mortgage Loans
(Maximum loan amount of $417,000):
Maximum Loan-to-Value:
30 year fixed rate @ 80% is 5.25%*
15 year fixed rate @ 80% is 5.00%**The maximum loan-to-value percentage may be higher under certain circumstances
Assuming a loan amount of $350,000, your monthly Principal & Interest payment would be:
30 year fixed rate @ 5.25% = $1,933
15 year fixed rate @ 5.00% = $2,767
Jumbo Mortgage Loans
(Loans in excess of $417,000)
The market for jumbo mortgages is very tight and what loan programs are available are limited in loan-to-values (70% and less) and have relatively short maturities (5 - 7 years with a 30-year amortization). There are virtually no 30-year and 15-year straight amortizing jumbo loans. However, while very limited, there are still some jumbo loan programs available.
In general, in order to refinance a mortgage, you must have good credit scores (mid 600s and above) and, of course, the house will have to have a value (determined by a third party appraisal) that exceeds the mortgage loan by the appropriate amount.
Act Now
If you are currently sitting on a fixed rate loan that is higher than 6%, an "option" ARM, or an adjustable rate loan at any rate that will be adjusting anytime in the next sixty months, now is the time to act.
The longer you wait to refinance, the less your home may be worth. The possibility of not being able to get out of your current loan for years to come may become a scary reality. Take advantage of this window of opportunity. We have the resources to handle mortgage refinancings such as the ones described above. Please contact us for assistance.
Stephen H. Barnett, Ph.D. - A former bank founder and president, Steve fully understands the banking industry and has been highly successful in helping individuals and business owners protect their assets, refinance or restructure their loans, and obtain the financing they need to build and grow their businesses. He is also a licensed real estate broker. Let his expertise help you. Call him today at 561.953.1421 or email him at steve@whiteknightsolutions.com or sbarnett@daszkalbolton.com.
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