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How Money And Mortgages Really Work
With more than 3,000 loan programs available, today’s consumer faces more choices than ever before, thus making the right decision about a mortgage is becoming more difficult. Most people believe that shopping for the lowest interest rate is the best approach to take. In fact, the most important factor is choosing the loan program that best fits your needs.
As an example, some people might go to an Internet lender and choose a 30-year fixed rate mortgage with an interest rate of 6%. But let’s assume they will live in the home for only five years until they retire. Had they selected a 5-year fixed rate loan they would have paid 5-1/2%. Why pay extra for a 30-year loan when they only planned on being in the home for 5 years?
Studies indicate the average homeowner refinances their home every 3.2 years. Therefore, it rarely makes sense to choose a 30-year fixed rate loan.
Another choice available to the borrower instead of the 6% 30-year fixed rate loan is to select a 5-year interest only loan at 5% interest. On a $150,000 loan, the savings equals $274 per month. With the 30-year fixed rate loan, the principal balance will be reduced by $10,418 over five years. But over those same five years the payment savings with an interest only loan will be $16,460. The net savings would be $6,041! This puts money in the borrower’s pocket instead of the lender’s! And, if the borrower invested this monthly savings at 10%, he would have earned an additional $5,281 over the five-year period. The total benefit to the borrower using the interest-only mortgage is $11,322!
The average borrower is not aware of these programs or their benefits. What the borrower does not know can cost THOUSANDS! Let us help.
To put our expertise to work for you, call us at 480-889-SAVE (7283) or simply complete an Online Application.
Click here to see Samples of our Loan Program Analyses.
We do loans in 38 states. Can we do a loan in your state? Click here.
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Scottsdale Location
11000 N. Scottsdale Road
Suite 121
Scottsdale, AZ 85254
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Mesa Location
1630 South Stapley Road
Suite 204
Mesa, AZ 85204
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480-889-SAVE (7283)
480-368-8869 fax
contact@profitfromyourmortgage.com
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