Appraised value: $1.985 million.
Loan amount: $865,000.
Rate: 3.875 percent.
APR: 4.501 percent.
Backstory: I was contacted by my clients who wanted to accomplish three things.
First, they wanted to refinance their mortgage because their current mortgage was an adjustable rate mortgage and the payment was about to reset in May, effectively driving their rate and payment up. Secondly, they wanted to pay off several high-interest loans by leveraging the bundle of equity in their home.
Lastly, they wanted to shift into a low payment by moving into an interest-only payment rather than a principal plus interest payment. Their ultimate goal was to make a significant reduction in the monthly outlay of their bills.
I brokered this transaction with one of our portfolio lenders who accomplished all of the goals and also accepted the gap year in employment. The outcome was a huge reduction in payment from my borrowers’ previous payment totaling $7,593/month to a new payment of $2,793/month, giving them much financial relief.