Give your mortgage an annual once over
If the last time you looked at your mortgage was when you
closed on your loan, it’s time to take it out for an annual once over.New loan
programs and opportunities to leverage your home equity can bring you lower
mortgage payments and new investment opportunities.
Is a fixed rate mortgage the best choice for you?
Many of us opt for the certainty of a 20 year or 30 year
fixed rate mortgage when we get our first mortgage.If you anticipate selling
your home within the next 10 years, one of our new hybrid loans may be a better
financial fit for you.Hybrid loans typically have a lower fixed rate than a
traditional 20 or 30 year mortgage.The savings you receive can well be worth
switching to a hybrid loan.
Are you paying for Private Mortgage Insurance (PMI)?
There are a lot of new loan programs available that can help
you eliminate PMI, even if you have less than 20% equity in your home. The
monthly savings adds up quickly. This money can be put to better use to help
you achieve other short-term and long-term financial goals.
Are your taxes and insurance up to date?
Even though your mortgage servicer is responsible for paying
your taxes and insurance out of your escrow account, it just makes sense to
periodically check to see that these payments are being made properly. While
you’re at it, you’ll want to review your homeowner’s insurance policy. It’s a
good idea to review your policy every two to three years to make sure it covers
recent home improvements, replacement costs for the contents of your home, and
that its reconstruction coverage is keeping pace with inflation.
Do you have
a Home Equity Line of Credit (HELOC) for emergencies?
Many homeowners are making the proactive choice to secure a
Home Equity Line of Credit (HELOC) for emergencies. A HELOC is a revolving line
of credit that only charges interest when you actually draw money from the line
of credit. As you repay the balance of the draw, the credit becomes available
again. Securing a HELOC in advance can be a great help if you’re ever laid off
or have an unexpected medical or other emergency.
How’s your credit report?
The information in your credit report has a huge impact on
whether or not you will again qualify for a mortgage loan. That’s why it’s
important to periodically check your credit report.
Now it’s even easy to do so. A recent amendment to the
federal Fair Credit Reporting Act (FCRA) mandates that each credit reporting
company provide you with a free copy of your credit report, at your request,
once a year. To request your free credit report, visit
http://www.annualcreditreport.com.
(Free reports are being phased in over a nine-month period, rolling from the
west coast to the east beginning December 1, 2004. By September 1, 2005, free
reports will be accessible to all consumers.)
Are you making the most of your home’s equity?
With rising home prices, you may have more equity in your
home than you realize. Taking out a home equity loan to payoff credit card
debt, car loans and other higher interest debts makes good financial sense.
Is it time
to refinance?
The timing might be right to refinance your mortgage loan.
New rates may help you significantly lower your monthly payment. Or you might
want to “cash out” some of the built-up equity in your home, which you can use to
consolidate debt, improve your home, take a vacation - whatever! Perhaps by
refinancing you can even pay off your mortgage sooner!
I will work with you to determine if the timing is right to
change your loan program, considering your cash on hand, how likely you are to
sell your home in the near future, and what effect refinancing might have on
your future plans.
Roxy Redenbaugh
ACMC Loan Consultant
Branch Manager
NMLS #269926
808-637-0011
There's a
simple trick to significantly reduce the length of your mortgage and save you
thousands of dollars. The trick is to make one extra mortgage payment a year
and apply that payment toward your loan's principal.
With a
$100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will
pay a total of $227,542.98 to pay back the loan in 30 years. That equals
$127,542.98 in interest payments.
