The recent drop in rates over the last 30 days has presented multiple opportunities. Home buyers are able to take advantage of significant discounts in home prices, coupled with extremely low payments, to make housing more affordable than ever.
I have also been advising current clients that this is a perfect opportunity to utilize low mortgage rates to cut the term on their existing mortgages --- many of my clients are taking advantage of this and moving to 15 and even 10 year mortgages.
For clients who are being VERY aggressive with the pay-off of their mortgage, we are now offering 5 year fixed rate mortgages below 3%!!!!! Absolutely unbelieveable!!!
To see the effects of selecting a short term mortgage vs. a 30 year mortgage, call or e-mail me, and I can provide you with a detailed schedule showing you the incredible interest savings and how this can help you build wealth by freeing up cash flow after your pay-off, assist in accelerating retirement savings, funding education accounts or to simply live without STRESS being debt free!!
Saturday, July 23, 2011
Thursday, June 23, 2011
NO-COST LOANS
Refinancing at today's extremely low interest rates can prove to be a tremendous savings. But with increased closing fees and stricter underwriting guidelines, how do you know whether refinancing is right for you?
One sure way to guarantee savings is to use a No-Cost Loan. A No-Cost Loan is designed to eliminate closing fees that often run around $2,000 ---- and even as high as $5-6,000 with some of the new government refinance programs such as the Home Affordable Refinance Program (H.A.R.P.). By using a No-Cost Loan there is no need to calculate a "break even" point or worry about the savings in the reduced monthly payment being enough to recoup the closing fees that you would pay otherwise.
No-Cost Loans will generally have a slightly higher interest rate than a mortgage with fees. Over a longer period of time, a lower rate may save more in interest expense, but the savings on a short term mortgage is almost inconsequential. For example, I am currently recommending 15 and 10 year mortgage options to many of my clients. The time that it takes to recoup closing fees is often near the end of the term on a 10 year mortgage, so a No-Cost Loan provides flexibility and IMMEDIATE savings.
For more detailed information regarding No-Cost Loans at First Place Bank, call me direct at 734-433-0922 or apply on-line at www.firstplacebank.com/jonmykala. A direct link to the application can be found to the right of this blog.
One sure way to guarantee savings is to use a No-Cost Loan. A No-Cost Loan is designed to eliminate closing fees that often run around $2,000 ---- and even as high as $5-6,000 with some of the new government refinance programs such as the Home Affordable Refinance Program (H.A.R.P.). By using a No-Cost Loan there is no need to calculate a "break even" point or worry about the savings in the reduced monthly payment being enough to recoup the closing fees that you would pay otherwise.
No-Cost Loans will generally have a slightly higher interest rate than a mortgage with fees. Over a longer period of time, a lower rate may save more in interest expense, but the savings on a short term mortgage is almost inconsequential. For example, I am currently recommending 15 and 10 year mortgage options to many of my clients. The time that it takes to recoup closing fees is often near the end of the term on a 10 year mortgage, so a No-Cost Loan provides flexibility and IMMEDIATE savings.
For more detailed information regarding No-Cost Loans at First Place Bank, call me direct at 734-433-0922 or apply on-line at www.firstplacebank.com/jonmykala. A direct link to the application can be found to the right of this blog.
Friday, May 20, 2011
Having A Hard Time Finding A Nice Home?
With foreclosures at an all time high you would think that you would have your choice of homes in the market. But the reality is, the inventory of nice homes is dwindling.
What can you do to help with this dilemma?
Consider adjusting your focus. If you are looking for homes in a lower price range with the hope of "making improvements", you will often find that after all of the time and costs involved with purchasing a "rehab property" that you can buy a slightly higher priced home in better condition, better neighborhood and also save yourself the headache and frustration related to buying a rehab home.
If you are looking for a property in need of attention, you should also investigate a rehabilitation loan to help you with funding your new project. Rehab Loans are extremely useful tools, but you should be fully aware of all the issues related to a rehabilitation loan and the risks associated with this type of loan.
For more information on rehabilitation loans or further suggestions that may help you with finding your dream home, please call my office for an individual consultation.
What can you do to help with this dilemma?
Consider adjusting your focus. If you are looking for homes in a lower price range with the hope of "making improvements", you will often find that after all of the time and costs involved with purchasing a "rehab property" that you can buy a slightly higher priced home in better condition, better neighborhood and also save yourself the headache and frustration related to buying a rehab home.
If you are looking for a property in need of attention, you should also investigate a rehabilitation loan to help you with funding your new project. Rehab Loans are extremely useful tools, but you should be fully aware of all the issues related to a rehabilitation loan and the risks associated with this type of loan.
For more information on rehabilitation loans or further suggestions that may help you with finding your dream home, please call my office for an individual consultation.
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