A client had a mortgage with a balance of $432,000 and an interest rate of 3.99%. She needed $20,000 for improvements on the property. Instead of increasing her loan, which would create a cash-out and higher rate, we decided to lower the loan amount to $417,000 (conforming loan limit) plus a line of credit for $35,000.
As a result, she can have a new bathroom and her monthly payments are about $200 LOWER!
Cheers,
