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

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Mortgage and Lending with Starkey Mortgage - Where PEOPLE come first!

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?

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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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