Mortgage Rate update and try this tip to build equity Examiner.com
Today's POV* Home Loan product came out and had a few re-prices during the day by some of the major Wholesale Lenders. Conforming loans (up to $417K) are at 4.875% and High Balance Conforming (up to $729,750) are at 5.0% . SUPER Jumbos (up to $2 million) are at 5.75% . As always questions or comments are welcome at lololoans@yahoo.com
Feed the Pig: To borrow from the current advertising campaign on tv. In this case of course we are speaking of building equity in your home, which after the last couple of years may sound like a tough sell at this point in time. But it can be done. I had a potential client approach me about Refinancing his current loan. Great credit, not a bad rate, 30yr fixed. Turns out he wanted to ReFi because he had an Interest Only loan and was doing better financially now and wanted to build equity. Instead of going through the FUN of the loan process, and of course the cost involved, why not try this? Simply calculate your mortgage payment at a fully amortized rate. You can make the fully amortized payments each month based on 30, or even 15yr payment schedules and thus build equity. AND should you have a catastrophe one month ("but Dad I thought YOU put oil in the car!") you can always fall back on the Interest Only payment for that month. Now one thing to note is that the rates on Interest Only loans are slightly higher than fully amortized loans, but if you are currently in an Interest Only then it might make sense to stay there. Here is a tool that is handy to use in that you can adjust the life of the loan to 30, 15 or any number you wish (I love 20yr loans). http://www.mortgage-calculator-free.com/
