YOUR HOME IS OWNED BY THE BANK. NOT YOU. NO YET.
Buying a home is a big financial investment – But until you actually OWN it, it belongs to the bank.
Get ready to pay off your home sooner…
The Power of a Quarter of a Percent
by Doug Dahl – Broker/Mortgage Financial Specialist
It ALWAYS makes sense to refi when ‘The overall savings far exceeds any fees financed’.
Simple Mortgage Math Solved
Let’s say your loan started at $425,000 and your interest rate is fixed at 4.25%
Your principal and interest payment would be $2,090.74
3 ½ years into the loan the balance would be about $398,500*
You would have 318 months (26.50 years) remaining for a Grand Total of $664,855
*assumes no additional principal payments had been applied.
Your New Loan
New loan (rounded up): $400,000
New Rate: 3.99%
New Principle and Interest Payment $1,907.36
That’s a payment reduction of $183.38, right?
Here’s where most get lost..
While it is true that the new loan is amortized over 30 years, if you were to simply apply your current payment amount to the new loan, it would be paid off in
305 months (25.42 years) for a Grand Total of $637,675
‘The new loan thus would be paid off over 1 year sooner with a significant savings of over $27,180’
And here’s the very interesting part of the above FACT: The total amount of your time required to achieve this savings is about 3 – 4 hours over a period of between 2 and 4 weeks. ‘How much do you earn from working 3 – 4 hours?’
That’s as easy as I can put it. If you don’t agree with the math or have additional questions, I am more than happy to go over this more in-depth.
If we can save you tens of thousands and you like the terms, we can lock a rate on the spot. This method works well with any Loan Term: 10 Years, 15, 20, etc.
“At Black Ink Mortgage, we help you build wealth by making loans that are profitable”
Black Ink Mortgage helps you to
- Make sure you have the best home loan
- Pay off your mortgage sooner
- Own your home sooner
Doug Dahl | Broker & Owner