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Is
it Time to Fix That Broken Arm?
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:
arm@fix-my-arm.net
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| 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 6.000%.
A Monthly Payment of $1,498.88 for 30 years. Okay, now see what happens
if the rate increases buy 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 ($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. |
30 Year Fixed Rates
Rate
Payment
| 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 |
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Now let's discuss paying Points.
On the same loan, each .125% in points equals $312.50 ($250,000 x .125%
= $312.50). 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 our 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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