* Based on a loan amount up to $417,000 for the owner occupied single-family residence with a 15/15 term. Interest rates are subject to change without notice and does not constitute a commitment to make any loan at any specific rate.
Mr. Cramer needed a pre-approval letter. He was selling a single family home in San Francisco that he owned together with his sister. The proceeds would go to buy a four unit building in the North Bay.
He and his wife own their home with $250,000 balance of the mortgage of 4.00% and 28 years left to pay it off. He is 69 years young and recently retired. His wife is younger.
After checking interest rates and realizing that conforming loans (up to $417,000) dropped to 3.25% for 15 years amortized loans, I asked him if it would make sense to pay off their current balance 14 years sooner?
It did.
He wanted to be sure that by the time he is gone, his wife will have a smaller mortgage or not at all. Their payments are increasing, but would be offset by the extra rent on the new rental property.
Whom do you know who needs to lower their interest rate?
Do not keep me as a secret.
SMILE AND PLEASE SHARE IT WITH A FRIEND