Perhaps
there is a better way
How about using the existing equity in
your home to payoff your mortgage. Let's
illustrate an example:
| · |
Let's say your existing
home has an estimated market value of
$250,000. |
| · |
The amount remaining on
your first mortgage loan is $150,000. |
| · |
Instead of refinancing
and paying all of those upfront closing
costs, how about doing something like
this: |
| Estimated
Market Value: |
|
$250,000 |
$250,000 |
$250,000 |
| Percentage
LTV: |
|
70% |
80% |
90% |
| Percentage
of Market Value: |
|
$175,000 |
$200,000 |
$225,000 |
| Amount
to Payoff Your Mortgage Debt: |
|
$150,000 |
$150,000 |
$150,000 |
| Remaining
Equity: |
|
$25,000 |
$50,000 |
$75,000 |
You will find that most
banks charge zero closing costs with minimal
hassle.
You simply apply for an equity
loan with a participating lender and instruct
the lender to use the equity in your home
to payoff your mortgage.
Note that interest rates at 80%LTV or lower
for large borrowing amounts come with very
attractive rates. And many lenders offer
up to 15, 20 and in some cases, 30-year
repayment plans.
· remodel
your home
· finance
a new car, truck or recreational vehicle
· consolidate
your loans
· put
a child through college
Unlike traditional refinancing
programs where you pay a lot to refinance
your home, consider using the equity in
your home to payoff your mortgage saving you all of the upfront
mortgage refinancing costs.
Need more proof?
Do some calculations to analyze how much
you can save:
calculate
your break-even point for refinancing:
from hsc.com
estimate
your monthly savings if you payoff your
mortgage with the equity in your home
|
