Mortgage Customer Choices
Dec. 5th, 2006 07:38 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
livingdebToday I received from my mortgage company an update on my current mortgage customer services. Because they appreciate having me as a customer and want to thank me for trusting them with my home financing needs. Would you like to hear my fabulous options?
Choice #1: Get Cash
"You could get up to $78,924.64 simply by refinancing now with a new 30 year fixed-rate mortgage; assuming a rate of 6.125% APR, your monthly payment (principal and interest) would be approximately $756.18."
Mmm, cash. Well, it's not enough to retire on, especially if I have 30 years of mortgage to pay off. But my current rate is 6.625%, so I could use the money to pay off my current mortgage--is this one of those mathematical impossibilities? And with closing costs added in, it would cost just the same!
Choice #2: Save Money
This is my personal favorite. By refinancing with a new 30-year fixed-rate mortgage I could save "up to $8.87 per month" with an estimated monthly payment of $276.32. Now since my current payment (P&I) is $505, I would be saving over $200, not $9. But that would only be for the first seven and a half years. For the following 22.5 years, I would be losing $276.32. Um, no thanks.
Choice #3: Purchase a New Home
"Have up to $71,032.18 ... to put toward the new home you choose." Yep, if I buy a new house, what I really want is two 30-year mortgages.
Oh well, it's so nice to know they're looking out for me.
Choice #1: Get Cash
"You could get up to $78,924.64 simply by refinancing now with a new 30 year fixed-rate mortgage; assuming a rate of 6.125% APR, your monthly payment (principal and interest) would be approximately $756.18."
Mmm, cash. Well, it's not enough to retire on, especially if I have 30 years of mortgage to pay off. But my current rate is 6.625%, so I could use the money to pay off my current mortgage--is this one of those mathematical impossibilities? And with closing costs added in, it would cost just the same!
Choice #2: Save Money
This is my personal favorite. By refinancing with a new 30-year fixed-rate mortgage I could save "up to $8.87 per month" with an estimated monthly payment of $276.32. Now since my current payment (P&I) is $505, I would be saving over $200, not $9. But that would only be for the first seven and a half years. For the following 22.5 years, I would be losing $276.32. Um, no thanks.
Choice #3: Purchase a New Home
"Have up to $71,032.18 ... to put toward the new home you choose." Yep, if I buy a new house, what I really want is two 30-year mortgages.
Oh well, it's so nice to know they're looking out for me.