The best reasons to bor- An adjustable rate mort-row on your equity are to gage (ARM) attracts buy-either pay off high-interest ers with a very low initial debt like credit cards or interest rate (also known as a auto loans, or to pay for “teaser rate”). After the ini-a remodel of your home. tial period of a few months Remodeling with equity to a few years is over, the makes sense as long as your rate adjusts to the current remodel adds to the value of interest rate. This option your home, thus increasing only makes sense for people your equity. who plan to own their
A fixed rate mortgage, home just for the initial low also known as a 15- 30- or interest period. As housing 40-year mortgage, has an prices rose in the last few interest rate that is locked-in years, many people chose an for the life of the loan. Buy- ARM which allowed them ers of fixed rate mortgages to buy more house than they believe the interest rates will could afford. These people rise in the future so they are now seeing their month-are locking in current rates. ly payments rise as the initial These loans are best for interest rate expires. Many people looking for a stable mortgage bankers believe
the
ADAM
KNERNSCHIELD
Contractor’s License
Number 336897
WAREHOUSE & SHOWROOM
Corner of Olympic Drive
and Redwood - 3511
Post Office Box 96
Clearlake, California 95422
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RATE AF TER REFINANCE
NEW MONTHLY PAYMENT
MONTHLY SAVINGS
MONTHS TO BREAK EVEN
The third loan has the lowest break-even point (the time it takes for you to start realizing savings) at eight months. It will also save you considerable money in interest over the total life of the loan.
How to Get Started
The first step in a successful refinance is to do a little research to find if you can save money. Search online, check advertisements in the newspaper, or call various lenders to find out what mortgage rates are available. Pay attention to how different terms affect the rates and what kinds of closing costs are attached. You want to balance the savings of a lower monthly payment against the costs of refinancing. Daulton Abernathy, Senior Loan Consultant for Washington Mutual in Lakeport and Ukiah, says “the most important thing
to remember when choosing to refinance is to ask a lot of questions. If a loan package looks too good to be true, it is. Go to someone you trust: a friend, a realtor or a title company and ask who they recommend for loans. Then ask that loan specialist about any specific loans you’ve learned about.”
Many mortgage websites have refinance calculators where you can plug in your current mortgage payment and interest rate and then compare it to other interest rates and terms.
One such calculator is available on the internet at http://cgi.money.cnn.com/ tools/cutmortgage/cutmort-gage.html
Continued on page 36
Home loans in Mendocino & Lake County
for over 20 years and we have great interest rates!
Complimentary pre-approval.
Also available evenings & weekends for your convenience
Manufactured Home Loans at 95-100% LTV
Washington Mutual
HOME LOANS
Programs subject to change. Certain restrictions may apply. Borrower pre-approval subject to acceptable property appraisal. We have loan offices and accept applications in Washington Mutual Bank, FA- many states: Washington Mutual Bank- ID, OR, UT, WA; & Washington Mutual Bank fsb- ID, MT, and UT
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References:
http://www.balentinewoodflooring.com
http://cgi.money.cnn.com/tools/cutmortgage/cutmortgage.html
http://cgi.money.cnn.com/tools/cutmortgage/cutmortgage.html
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