Eugene Loan Guy

When does a 15 year mortgage loan make sense? Rate – Term – Payment!

Fred Chamberlin — Tue, 24 Aug 2010 23:18:05 +0000

Most often I recommend clients take the 30 year fixed rate over the 15 because the difference in interest rate usually doesn’t make the shorter rate all that appealing, however, there are exceptions.

Let’s talk about a hypothetical case in Oregon. Here are the parameters:

Property Value	$250,000
Loan Amount	$180,000
Original Loan	$200,000
Payment @ 5.75%	$ 1,167.15
New Loan Amount (w/cls cost)	$185,300
New Payment @3.75% (15 Yr)	$ 1,454.44
Difference	$ 287.29
APR New Loan	4.042%

The question remains, does this make sense? The answer is that it does if the increased payment doesn’t create a hardship. If you are looking to save on the amount of interest your are paying each month, this works. If you are looking for a lower payment, then the 30 year would probably be a better deal for you. Many people are currently making additional principal payments ever month to pay off quicker and pay less interest.

Maybe a refinance like this will make sense for you. Maybe a 30 year refinance will make more sense, but whatever your choice, don’t you think it is worth looking into? I tell people when it is a mistake to refinance, but I also show them when it is a benefit to refinance. You will always get the straight story from me.

Contact me

Navigating the mortgage approval process can be daunting. You need someone on your side. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

When does a 15 year mortgage loan make sense? Rate – Term – Payment! is a post from: Eugene Loan Guy

Who am I? Does my site tell you?

Fred Chamberlin — Fri, 20 Aug 2010 21:33:13 +0000

Today is one of those days that I feel like expressing a bit of outrage at those websites that purport to give out information about mortgages and real estate loans that you have no idea who they are or what they are trying to do.

I get Google alerts for postings that have to do with several key mortgage words, so I am often looking at other websites to see what they have to say and am very often disappointed to find out that it is a site’s primary focus to collect money through Google Ads, is a link farm, or is gathering names to sell to third party lenders, or all three.

Beside those sites, there are the national lenders that may be posting their “deal of the day” or some such tripe and as I look at the various sites, I am constantly amazed at the number of them that are not in the least bit compliant with national and state regulations.

Advertising

For instance, if offering mortgages, are you aware that the loan officer on the site must be licensed and regulated through NMLS and the state? My NMLS number is 271072 and my Oregon and California license numbers are the same, just expressed differently. Take a look at the majority of the websites out there with mortgage information and tell me if you can find that anywhere on the site.

Also, when advertising mortgages, and blog posts are often advertisements, the Equal Housing Opportunity symbol must be present. It doesn’t have to be very big, but it needs to be there. Mine is on every page of my blog sites in the sidebar along with my license information.

How about contact information? I have so many ways to contact me, you can get overload, but so many of those websites out there don’t have a real person that you can get in touch with unless you fill out one of their forms and then that information will probably be sold to a third party. Is that what you want, or do you want a real person? Check out some of the places you find on a Google search and let me know if you find the EHO logo or license or contact information. Even national lenders have the Equal Housing logo on their websites. They also have contact information, but I personally think you are better off contacting me.

Basically, I am suggesting that it would be wise to check out the site you are on before committing to filling out a form, they may be gathering your information just to sell it. Know who you are dealing with. Watch out for masks. My smiling (although not too handsome) face is all over my websites.

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Who am I? Does my site tell you? is a post from: Eugene Loan Guy

Is it time to refinance your Eugene/Springfield home?

Fred Chamberlin — Mon, 16 Aug 2010 22:54:17 +0000

I talk to people every day that are interested in seeing if it makes sense for them to refinance and sometimes I actually tell them no. I know that it is hard to believe but everyone that wants to refinance, should not do it.

There are some “rule-of-thumb” guidelines out there that people have been hanging on to over the years. For instance, “If you can’t get at least 2% reduction in rate, it isn’t worth doing.” Sometimes that is correct and sometimes it isn’t. If you have a $50,000 loan, it probably will not be cost effective to reduce your rate by 2%, whereas, if you have a $350,000 loan, it may be worthwhile to reduce your rate by 1%.

Every circumstance is different, and that is why you should work with a knowledgeable loan consultant. Maybe it would be the right thing for you to refinance to a shorter term. Maybe it would make sense to take cash out of your home, assuming you have any left in it. Take a look at this discussion from Fox Business News:

http://video.foxbusiness.com/v/4312379/home-refinancing-rates-surge/?playlist_id=87185

Also, it is a good idea to shop around, not only for rate and fees but also for the right company and loan consultant. Just because someone promises the lowest rate, doesn’t mean that you will get the best deal, but if someone is promising you something that sounds too good to be true, it probably is. Then there are those companies that are advertising out there that make what they are offering sound so wonderful that you should jump right on it when in reality, it isn’t even competitive in the market place. Watch out for adjustable rates masquerading as fixed rates in advertising.

Look before you leap and find out what you can about your choice. Are they established? Are they local? (National telemarketers and advertisers have to pay for that somehow.) Are they competitive? Are they honorable? Can they close in the time they want to lock? Will they tell you that you shouldn’t refinance when it doesn’t make sense to you? Or are they only after that next loan? Are they licensed? Do they have references? Do they know what drives interest rates?

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Is it time to refinance your Eugene/Springfield home? is a post from: Eugene Loan Guy