Being honest paid off - and put $15,000 in my client's pocket!

being honestI admit it, I am kind of a geek when it comes to comparing loan scenarios for clients.  Yesterday I made a call to a client who had asked me to watch rates for them.  They are on a 15 year loan with 8 1/2 years left and a rate of 5.375%.  By this point in a 15 year amortization, more than half of their payment is going toward principal.  Why refinance it, right? 

They asked me to run several scenarios for a new 10 year loan.  The loan would shave $300 off their payment so they wanted to know how it would look if they paid an additional $300 on the new loan I was proposing.  And what about $500?  And how much would they need to pay to pay it off in 7 years?  This is the kind of thing that really gets me excited (now you see my inner geek, don't you?). If it weren't for this awesome website I found, it might not be as much fun.  I ran my numbers and anxiously awaited their arrival in my office.

Sometimes I am honest to a fault and it costs me a loan.   But I believe it is better to do what is best for my client's needs then my own.  So I threw down the interest card.  Since so much of their payment is going towards principal already, would it really be a big enough interest savings to make it worthwhile? This is where I thought I was going to cost myself the deal...so I ran the numbers and fireworks went off.  By refinancing their loan to a lower rate they can continue making the same payment they have been making (which included a few hundred dollars extra to principal) and they will SAVE $15,000 in interest over the next 7 years! 

Want to guess whose application is being delivered today?

The opinions expressed here are the sole responsibility of the author and do not necessarily reflect the view of Starkey Mortgage

Jennifer Robinson

NMLSR#190994 - Alabama license #50092

 

www.LoansWithJennifer.com

334.549.2445 cell

334.213.2537 office

jenniferr@starkeymtg.com

 

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Jen

Jennifer Robinson-NMLSR# 190994/AL#50092 Conventional, FHA, VA, Step Up and USDA

Montgomery, AL

More about me…

Starkey Mortgage - Where PEOPLE come first!

Address: Specializing in INVESTMENT properties, and first time homebuyers, Contact, Me, 334-549-2445

Office Phone: (334) 213-2537

Cell Phone: (334) 549-2445

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