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Is
it Time to Fix That Broken Arm?
Fixed
Rate Refinancing
ARM
Refinance - Refinancing ARM's
Turn
that ARM into a low fixed rate today!
410-643-0222
or Toll Free 1- 888-643-3659
Email:
arm77@fix-my-arm.net
|
| Why
Gamble?
Here's
Why Not To:
Assumptions:
Loan
Amount $250,000
Principal
& Interest Payments
Let's
see if we can find a pattern. Yes, there it is. The payments
differ by around $20 for each eighth (.125) of a percent increase or decrease
in the rate. Here is why we say do not play the market and to lock
in.
Let's
assume the Zero Point quote today is 4.500%. A Monthly Payment of
$1,266.71 for 30 years. Okay, now see what happens if the rate increases
by an eighth of a percent (.125%) to 4.625%. Your payment will increase
by $18.64 a month, to $1,285.35. Let's see what happens if it decreases
.125% to 4.375%. Your payment would decrease by $18.50.
On
the higher end of the interest rate scale...
Let's
assume the Zero Point quote today is 6.000%. A Monthly Payment of
$1,498.88 for 30 years. Okay, now see what happens if the rate increases
by an eighth of a percent (.125%). Your payment will increase by
20.15 a month. Let's see what happens if it decreases .125%.
Your payment would decrease by $20.04.
Most
people spend more than that ($18 to $20 a month) just on coffee on the
way to work. Bottom line, we recommend that you refinance that
ARM to a fixed rate* (see below). Call us, choose your rate, lock
in, and sleep better at night, with one less thing to worry about.
Now let's discuss paying
Points. On the same loan, each .125% in points equals $312.50 ($250,000
x .125% = $312.50). Continued below. |
30 Year Fixed Rates
Rate
Payment
| 4.000 |
1193.54 |
| 4.125 |
1211.62 |
| 4.250 |
1229.85 |
| 4.375 |
1248.21 |
| 4.500 |
1266.71 |
| 4.625 |
1285.35 |
| 4.750 |
1304.12 |
| 4.875 |
1323.02 |
| 5.000 |
1342.05 |
| 5.125 |
1361.22 |
| 5.250 |
1380.51 |
| 5.375 |
1399.93 |
| 5.500 |
1419.47 |
| 5.625 |
1439.14 |
| 5.750 |
1458.93 |
| 5.875 |
1478.84 |
| 6.000 |
1498.88 |
| 6.125 |
1519.03 |
| 6.250 |
1539.29 |
| 6.375 |
1559.67 |
| 6.500 |
1580.17 |
| 6.625 |
1600.78 |
| 6.750 |
1621.50 |
| 6.875 |
1642.32 |
| 7.000 |
1663.26 |
| 7.125 |
1684.30 |
| 7.250 |
1705.44 |
| 7.375 |
1726.69 |
|
It will usually cost a
half point (same as one half percent of the loan amount) to lower the rate
by a quarter (.25%)** (see below). In essence, it could cost
you $1,250 (a half point) to save about $40 a month. The general
rule of thumb is: if the "break even" point is 24 months or less,
that it usually makes sense to pay to get a lower rate. Using the
above scenario, the break even point is 31 months or so. Every
month after payment number 31, it was worth paying the half point.
If you are certain you will stay in the house longer than that, it may
still be an option that may make sense for you. We can help you determine
what may be best for you.
On a refinance, whether to
pay of an ARM or not, most people opt for our No Point mortgage loans.
However, it is entirely up to you if you want to use some of your equity
or hard earned cash to get a lower rate by paying a point or two.
I can offer suggestions after
we determine what your goals are. Check with me today. Why
Use Burt?
On
Line Loan Inquiry form - You may remain anonymous if desired, plus
No S.S. Number or Bank Account info is needed to get started .
Download an actual Loan
Application and fax it to us. Our fax number is on the bottom
of page 4 of the loan application. You may remain anonymous if desired,
plus No S.S. Number or Bank Account info is needed to get started on your
ARM Refinance. Fix Your ARM Today and sleep better at night.
* If you plan on staying
in your home less than 5 years, please let us know. There may be
other options that may better suit your individual needs.
** Half a point = .25% reduction
in rate is the general rule, some days it is less some days more, please
call for that day's variance.
Burton Jamison
410-643-0222 |
Toll Free 1-888-643-3659
Serving All of Maryland
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