Hi, I bought my 3 Family about two years ago, right now i am currently living in it with 1 unit being renovated and the other unit occupied. Recently in the mail I received a letter from a mortgage company telling me i could get $48k and bring my mortgage payment down from $3600 to $3000. I have been hesitant to do this only because my interest rate is 4.5% now. Any advice? Thanks guys.
Hi, I bought my 3 Family about two years ago, right now i am currently living in it with 1 unit being renovated and the other unit occupied. Recently in the mail I received a letter from a mortgage company telling me i could get $48k and bring my mortgage payment down from $3600 to $3000. I have been hesitant to do this only because my interest rate is 4.5% now. Any advice? Thanks guys.
It's possible they are just quoting you their P&I payment, when you are thinking they are quoting you principle, interest, taxes, and insurance. That would be my first guess. Interest rates are in the 6-7% range... so it doesn't take a rocket scientist to figure out if you are increasing your loan amount by ~$50k, and at a higher interest rate, your payment has to go up or your terms have to extend. Maybe they are doing a 40 year mortgage, or a balloon payment where you still have a big payoff at the end of the term, or something like that? But at the end of the day, the numbers don't lie. You would have to see all their terms to figure out where they are 'squeezing the balloon' in one place to make it sound attractive and be able to quote something like that.
Hi, I bought my 3 Family about two years ago, right now i am currently living in it with 1 unit being renovated and the other unit occupied. Recently in the mail I received a letter from a mortgage company telling me i could get $48k and bring my mortgage payment down from $3600 to $3000. I have been hesitant to do this only because my interest rate is 4.5% now. Any advice? Thanks guys.
It's possible they are just quoting you their P&I payment, when you are thinking they are quoting you principle, interest, taxes, and insurance. That would be my first guess. Interest rates are in the 6-7% range... so it doesn't take a rocket scientist to figure out if you are increasing your loan amount by ~$50k, and at a higher interest rate, your payment has to go up or your terms have to extend. Maybe they are doing a 40 year mortgage, or a balloon payment where you still have a big payoff at the end of the term, or something like that? But at the end of the day, the numbers don't lie. You would have to see all their terms to figure out where they are 'squeezing the balloon' in one place to make it sound attractive and be able to quote something like that.
Buyer beware!
All the best!
Randy
Thanks for the reply, i ignored it but maybe i should give them a call just to see what they are trying to sell me haha.