Tag - financial goals

ALV Mortgage Can Help Set You Up For Financial Success

Some look at their mortgage as being a lifelong payment, others look at it as an opportunity for investment that could one day bring in cash flow. In today’s blog we are going to look at two of our borrower’s that took advantage of the current low interest rates to refinance their loans to help set themselves up to achieve their financial life goals.  Firstly, we have Brandon. Brandon’s goal is to buy a new house in a few years and convert his current one into a rental. He wanted to lower his current mortgage payment so that when the house is converted to a rental, there will better cash flow. He reached out to see what we could do to secure him a better rate and lower his monthly payment. His original loan began back in July 2019 with a rate of 3.75%, a monthly payment of $1,358, and total interest over the life his loan was set to be over $143,000. After running the numbers, we found that we could refinance him into 29-year term and not have to reset his mortgage with another 30-year term. We got him an amazing new rate of 2.82%, his monthly payment dropped to $1,267 and his total interest over the life of the loan decreased to $101,491. Thanks to the refinance Brandon now plans to pay off this house before he is 60 so he can use 100% of the rental income to supplement his retirement income. What a fantastic plan that we are happy we were able to help him set into motion! Our second borrower, Shelly, was referred by her brother in law after he told her how much she could save by refinancing into a 15-year loan with me. Shelly originally bought her house in 2017 with FHA rate of 3.875% and a monthly payment of $1,670. Being in an FHA rate meant she would be paying mortgage insurance on top of her interest charges for the life of her loan. That put the total interest over the life of her loan over $166,000. The only way to remove mortgage insurance is to refinance. At first, she was really skeptical and did not think it was possible. However, there was no reason for her be nervous because we were able to get her a great new loan! Shelly was able to refinance into a conventional loan with a 5-year fixed rate of 2.625%. Her new monthly payment was $3 higher than her original payment, but she shaved 12 years off her new loan and after removing the mortgage insurance we were able to lower her total interest paid over life of loan to $45,541. This refinance was able to save her about $121,000 in interest charges! Her house value went up, now at an 80% loan value with no mortgage insurance. Shelly is only 37 years old and is beyond excited that she is now set to have her house paid off before she turns 52!  This completely changes her outlook on her retirement. Both borrowers had completely different stories and completely different loans, but one thing in common; they both needed a refinance option that would help them achieve their financial goals. ALV Mortgage loves helping people achieve their goals. We have a knowledgeable staff that knows the ins and outs of the industry to help get you the best deal possible for your loan. If you too are wanting to set yourself up for future financial success give us a call today. We may know a few tips and tricks to get you into the rate, term, or monthly payment that you are wanting. 801.206.4343, NMLS # 888979
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