How Small Changes Make a BIG Difference

It’s no secret that mortgage rates are at record lows. But according to many so called “gurus”, it
only makes sense to refinance if you can save x or y amount of dollars. Don’t let all the guru noise
or internet-babble discourage you from checking things out for your own situation.
For example, consider someone who just purchased a home or refinanced their $200,000
mortgage several months ago. They might have a mortgage rate of 5.5%. Many “experts” would
say it’s not worth it to refinance unless they can lower their rate by a full 1% without paying points.
However, what if they paid $4,000 in points and closing costs and bumped up their mortgage
balance to $204,000? Here’s what their situation might look like:

Old Payment = $1,135.58
New Payment = $1,033.64
Payment Savings = $101.94
If they save the $101 @ 4.5% they will have: If they save the $101 @ 6% they will have:
$6,782 in 5 years $7,047 in 5 years
$15,271 in 10 years $16,552 in 10 years
$25,897 in 15 years $29,373 in 15 years
$39,210 in 20 years $46,666 in 20 years
$76,698 in 30 years $101,456 in 30 years

Wow!!

If this represented your situation, and you listened to all the “gurus” telling you not to bother refinancing, you would
actually LOSE up to $101,456! Do yourself a favor. Put that $101,456 back in your pocket by calling me today! Although
I’m not promising that you will qualify to save exactly this much money, I will help you save as much money as possible
in your situation. As a Certified Mortgage Planning Specialist TM(CMPS®), I am committed, qualified and equipped to
help you evaluate your options and make smart choices.

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