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We ask our clients to describe their experience with Family Mortgage. Here are some of the responses we’ve had:
- We closed on our new home prior to selling our existing home. Utilizing Family Mortgage’s No Closing Cost loan we were able to conserve valuable cash and have kept our options open to take advantage of any future interest rate improvements! ~ Tony & Vicki Bryson
- I’m usually pretty cynical about things like this, but you proved that there are trustworthy people, even in the mortgage industry. ~ Richard Cave
- I have been able to restructure my mortgage to take advantage of lower rates utilizing Family Mortgage’s No Cost loan option on 4 different occasions over the last 5 years! ~ Jay & Sara McClure
- Scott talked us into paying a little higher interest rate and going with a No Closing Cost refinance. He called us back 6 months later to tell us that rates had dropped another 3/8% and that he could redo the loan for free again! ~ Hugh & Valerie Gallagher
- You never fail to meet my expectations. Your customer service is awesome. Thanks for the personal attention you’ve given. ~ Tony Promiscuo
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Reasons to choose a No Cost Loan:
- You are not sure how much longer you will stay in the house or
you may be relocated within 3 -5 years.
- You are not sure how much longer you will stay in this new
mortgage. In Atlanta, the average loan pays off in less than 4
years.
It typically takes 4 to 6 years to recapture closing costs if
you decide
to pay them when refinancing your home. Remember
that you don’t just refinance to get a lower rate. It could be for a
medical emergency, college education for your children, to
remodel the house etc….
- You believe that there is a chance that rates might go lower in the
future. If they do, we can refinance you once again with no
costs. As part of our service, we will keep an eye on the rates for you and contact you when it makes the most sense to refinance. Then, you will be able to lower your payment, twice, for FREE!. We have a
number of clients that have done this 3 or 4 times over a 5 year
period. That is like winning the mortgage lottery!!
Reasons not to choose a No Cost Loan:
- You believe that rates will never go lower than they are now and
you are not planning to move for at least 5 years.
- You believe that rates will never go lower than they are now and
you are not planning on needing to tap the equity in your home
for any reason for at least 5 years.
- Your loan balance is < $200,000 and your credit is not very good.
The exception to this is if you have a smaller loan balance and
you think you will definitely be out of the house within 3 years.
The smaller the loan size, the higher the rate will need to be to
get enough yield spread premium from the lender to pay your
closing costs. See comparison for your personal loan amount.
- Your loan is for an investment property.
Consider the following example:
Will you have a mortgage 6 years from now? If you pay closing costs, it will take approximately 6 years to earn back the costs.
Here's why: |
WITH CLOSING COSTS |
NO CLOSING COSTS |
LOAN AMOUNT |
$300,000.00 |
$300,000.00 |
Interest Rate |
6.500% |
6.750% |
Principle & Interest Payment |
$1,847.15 |
$1,896.20 |
Closing Costs |
$3,500 |
$0.00 |
Monthly Difference in Payment |
$49.05 |
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Simple Breakeven (difference/cost) |
5.95 years |
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