Actual Refinance Examples
Following are examples of refinancing and how they have helped people significantly reduce their interest costs and increase their cash flow.
| EXAMPLE A |
- Current home loan amount $260,000 at 7.50%, monthly payment $1,818
- Two automobiles with combined annual interest payments of $3,050
- Two credit cards with combined annual interest payments of $3,625
- Current total annual interest payments, home, cars, credit cards of $28,491
- New home loan amount $322,000 at 6.375% (includes closing costs) $1,711
- Cars and credit cards are now fully paid off
- New annual total interest cost for new home loan $20,532
Annual interest savings $7,959.
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| EXAMPLE B |
- Current home loan amount $550,000 at 6.75%, monthly payment $3,094
- One automobile with annual interest payment of $1,750
- Three credit cards with combined annual interest payments of $5,850
- Current total annual interest payments, home, car, credit cards of $44,728
- New home loan amount $616,000 at 6.25% (includes closing costs) $3,208
- Car and credit cards are now fully paid off
- New annual total interest cost for new home loan $38,496
Annual interest savings $6,232
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| EXAMPLE C |
- Current 1st home loan amount $417,000 at 6.875% monthly payment $2,389
- Current 2nd home loan amount $98,000 at 8.75% monthly payment $715
- Two credit cards with combined annual interest payments of $1,816
- Current total annual interest payments, 1st & 2nd , credit cards of $39,064
- New home loan amount $536,000 at 6.25% (includes closing costs) $2,792
- There is no longer a 2nd loan
- Credit cards are now fully paid off
- New annual total interest cost for new home loan $33,504
Annual interest savings $5,560
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In all three of the above examples, people combined their higher interest debt into one loan amount at a much reduced interest rate. Additionally, as we all know, the interest you are now paying for credit cards and personal automobiles is not tax deductible. The examples shown are not loan offers because rates change daily and each borrower must meet certain credit qualifications. The reason I have included these three actual examples is to demonstrate that there is an easy way to cut down the amount of interest you are needlessly paying out. The numbers you see in the examples show clearly how this works. These examples show how people have saved $5,000+ per year in interest. These are significant savings when you consider that after only three years they have saved between $15,000 and $24,000. That's $15,000 to $24,000 that could be put into a college 529 savings plan or your retirement account which would be far better than to continue paying it to the banks and credit card companies.
Obviously this is something to at least seriously consider. Submit your current loan information, balances and payment amount along with a ballpark estimate of your current credit card and automobile monthly payments to Peter and you will receive back a few interesting alternatives to consider. There is no obligation and unlike with most lenders, your phone will not ring off the hook with unsolicited phone calls.
Please just indicate how you would prefer to receive the information…e-mail, fax or phone.
Direct Line 800-962-8033
Office 925-855-9445
Fax 925-855-9770
peteru@clarionmortgage.com
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