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Casual Articles - Lower Mortgage Payments Increase Wealth
Fair Isaac, the company that develops the formula to determine credit scores looks at the average statistics of consumers and factors that into your score, called a (FICO). According to Fair Isaac the average consumer will have:· One inquiry on their personal credit report in a given yea
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity
Homeowners insurance is one of those things we're glad we have when there's an emergency, but the rest of the time we kind of resent paying. That makes sense, because we already have enough bills stuffing the mailbox every month, thank you very much. Now, there's no way to get coverage for fre
Everyone would agree mortgages are necessary expenses. Probably the biggest expense most of us have. Mortgages present the opportunity to secure income tax deductions while utilizing the house to live.
What if you could reduce your mortgage interest rate to 3% and be required to pay interest only for 5 years? Would you refinance your current house? Purchase another? While refinancing a client’s mortgage, I discovered such a mortgage. The client will save lots of money the next few years. Here is his scenario:
Client #1
$500,000 Loan Amount
Past
30 Year Fixed @6.00%=P&I
$2,997.75/ month
5th year loan balance
$456,989.77
Equity (assuming no appreciation)
$ 43,010.23
Current
LIBOR ARM @3.00%=Interest only
$1,250.00/ month
Applied additional $1747.75 / month to principal for 5 years
5th year loan balance
$362,370.82
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity
Prospect - "So now that I've told you what we are looking for, do you think that you can help us with this?" You - "Absolutely!" (or) You - "Definitely!" (or) You - "You have come to the right place Mr. Prospect" Answering questions about
Everyone would agree mortgages are necessary expenses. Probably the biggest expense most of us have. Mortgages present the opportunity to secure income tax deductions while utilizing the house to live.
What if you could reduce your mortgage interest rate to 3% and be required to pay interest only for 5 years? Would you refinance your current house? Purchase another? While refinancing a client’s mortgage, I discovered such a mortgage. The client will save lots of money the next few years. Here is his scenario:
Client #1
$500,000 Loan Amount
Past
30 Year Fixed @6.00%=P&I
$2,997.75/ month
5th year loan balance
$456,989.77
Equity (assuming no appreciation)
$ 43,010.23
Current
LIBOR ARM @3.00%=Interest only
$1,250.00/ month
Applied additional $1747.75 / month to principal for 5 years
5th year loan balance
$362,370.82
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity
Congratulations, you're a licensed real estate agent! You've completed 2-8 weeks of classwork with some testing and a final exam that went over pretty much everything you will never need or use again. If you were smart, you were collecting real estate leads even as you were taking your courses
Client #1
$500,000 Loan Amount
Past
30 Year Fixed @6.00%=P&I
$2,997.75/ month
5th year loan balance
$456,989.77
Equity (assuming no appreciation)
$ 43,010.23
Current
LIBOR ARM @3.00%=Interest only
$1,250.00/ month
Applied additional $1747.75 / month to principal for 5 years
5th year loan balance
$362,370.82
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity
While virtually every business now relies on information technology (IT) to help provide services or deliver products to the marketplace, things have rarely been more precarious for in-house IT professionals. This is so, despite the conventional wisdom that IT is acknowledged to be more strategi
5th year loan balance
$456,989.77
Equity (assuming no appreciation)
$ 43,010.23
Current
LIBOR ARM @3.00%=Interest only
$1,250.00/ month
Applied additional $1747.75 / month to principal for 5 years
5th year loan balance
$362,370.82
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity
So, Jane and Bob are once again leading a project. This time, they want to make sure they have a team that is more productive and has less challenges and conflicts. ========================================== There's the million-dollar question. =============================
Equity (assuming no appreciation)
$137,629.18
I proposed this loan program to Client #2.
Client #2
$1.2 Million Loan Amount
Current
5/25 ARM @4.25%=P&I
$5,903.28/ month
5th year loan balance
$1,064,681.48
Equity (assuming no appreciation)
$ 135,318.35
Proposed
LIBOR ARM @3.00%=Interest Only
$3,000/ month
Applied additional $2903.20 / month to principal for 5 years
5th year loan balance
$ 971,261.81
Equity (assuming no appreciation)
$ 228,738.19
You can see from these scenarios this mortgage can be a great tool to reduce your monthly mortgage payment or to shave down the loan balance thereby increasing your equity. This mortgage interest program is termed negative amortization. Rather than paying off the interest over the time period, you are paying of a small portion of the interest but not the required amount. Interest rates can go as low as 1.25%. If you want savings refinance your mortgage.
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