Mortgage Loan Stories
Tim and Cathy saved more than 2.375% on their interest rate
They were thrilled to lower their house payment by $762.25 per month. By trading in their old loan for one with today's low rates, they saved more than 2.375% on their interest rate and extended their loan to lower the payments even further.The Financial Picture:
The couple had a 30-year fixed-rate loan with a large national bank paying 6.625%. They had been paying for about 5 ½ years.| Original Loan Amount | $ | 442,000 |
| Original Payment (Principal & Interest) | $ | 2,833 |
| House Insurance | $ | 155 |
| Property Taxes | $ | 360 |
| Home Owners Association | $ | 85 |
| Total | $ | 3,433 |
The Goal:
Lower monthly payments.The Shrink My Debt Solution:
They refinanced their mortgage with Orange County's Credit Union, choosing a new 30-year fixed-rate loan at 4.00/4.230% APR with 0 points. They had excellent credit and an 84% loan to value.| New Payment (Principal & Interest) | $ | 1,990.82 |
| Mortgage Insurance | $ | 79.93 |
| House Insurance | $ | 155 |
| Property Taxes | $ | 360 |
| Home Owners Association | $ | 85 |
| Total | $ | 2,670.75 |
If Tim and Cathy would like to shrink their debt faster, they could pay a little extra each month.
Based on owner-occupied, single-family residence, no-cash out, and conventional loan. Rates used in this situation were effective 06/13/12. APR is Annual Percentage Rate. Illustration is based on the use of each individual’s Interest Rate. Rates subject to change at any time. Rates based on individuals credit score at time of application. Other restrictions may apply. All loans subject to final approval.
Tricia and Mark lowered their payment by $215.42
Tricia and Mark only owed $148,000 on their home valued at $725,000, but were still able to leverage today's low rates to lower their monthly payment by $215.42.The Financial Picture:
The couple's original mortgage loan was with a 30-year fixed rate paying 4.50%.| Original Loan Amount | $ | 165,000 |
| Original Payment (Principal & Interest) | $ | 837 |
| House Insurance | $ | 40 |
| Property Taxes | $ | 614 |
| Home Owners Association | $ | 299 |
| Total | $ | 1,790 |
The Goal:
Lower monthly payments.The Shrink My Debt Solution:
Tricia and Mark refinanced using a 7/1 Adjustable Rate Mortgage (ARM). The loan was $148,000 at 2.97/3.088% APR and 0 points. Using this option, the couple was able to lower their monthly payment by $215.42.| New Payment (Principal & Interest) | $ | 621.51 |
| House Insurance | $ | 40 |
| Property Taxes | $ | 614 |
| Home Owners Association | $ | 299 |
| Total | $ | 1.574.58 |
Based on owner-occupied, single-family residence, no-cash out, and conventional loan. Rates used in this situation were effective 06/13/12. APR is Annual Percentage Rate. Illustration is based on the use of each individual’s Interest Rate. Rates subject to change at any time. Rates based on individuals credit score at time of application. Other restrictions may apply. All loans subject to final approval.
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Lock in a low payment, then pay extra. The security of a low mortgage payment and paying a little extra can reduce your debt more quickly. And, you'll save a bundle in interest. |
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