Are your Considering Re-Financing a Denver home?
With home mortgage interest rates as low as they are and with all the smart people refinancing and buying news homes it is still not enough for some mortgage lenders to make a decent living.
Some unscrupulous lenders are advertising ridiculously low interest rats but failing to really explain why the mortgage interest rate is so low. Even worse than that are mortgage lenders who do not explain the long term consequences if someone bites the bait of the initial low interest rate and in the long run ends up paying more for their mortgage than if they would have kept what they originally had intact.
There are a couple of nationwide mortgage lenders that offer very low interest rate mortgage programs. In fact the rates are in the low five percentage range. Sounds great so far! But why would a lender offer you a mortgage program that is so far below the average thirty-year mortgage rate. They know that most borrowers will keep their mortgage for an average of five years. And second that very low interest rate is for only the first month or two. Then you have to add on the lenders profit and the low rate is now in the same ballpark as a conventional mortgage. So I would consider the first payment or two a way to buy your business and nothing much more than that. The lender will make their profit over time and you cannot afford to go out and refinance a couple of times a year.
The second way some lenders get you into a mortgage is with something known as Negative Amortization. This program allows the borrower to pay less than a full payment. Each month that this is done the overall amount you owe the lender increases so what ever you have in equity could disappear. So if you want to see your equity decrease this is not a bad program.
The next way to get a low interest rate is to buy down your rate. This is a way for you to get as much as two to three percentage points less up from and after a two or three year period your actual interest rate is higher than what you could have paid in the beginning. This program will allow for a buyer to qualify for a much higher loan amount as the mortgage payment is based on the initial interest rate.
So if you are in the market to buy a new home or refinance your current mortgage you need to sit down and hear about these different programs.
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Dawn-Renee Mack has been a Colorado mortgage professional for nearly a decade. She received formal education at Bradley University in Illinois. Today she leads an experienced lending team, which includes not only 30 years of combined mortgage experience but vast accounting experience as well, Mack firmly believes with each loan she originates for clients, to treat your family’s home mortgage as if it were her own. She looks at every situation with an eye for what is best in the present and what will also help you accomplish your long-term financial goals.
Dawn-Renee’s lending team firmly believes that client education is vital to a homeowner’s financial success. Through education and excellent service, she elevates what is often perceived as a frustrating and confusing process to a smooth, seamless home-buying experience. “I think the most important aspect of my job besides the planning of my clients’ mortgage future is to make sure they are educated about the process itself. Familiarity with what to expect allows a homeowner to relax, and that is my ultimate goal. Buying a house should be a positive experience!†Focusing solely on mortgages for her entire financial career has allowed Dawn-Renee to become an expert in her field. She knows the ins and outs of widely divergent programs, ensuring that all of her clients get the best possible loan, regardless of their specific situation.
Dawn-Renee Mack has access to over 350 investors and thousands of loan programs is invaluable to my philosophy that I will find the loan that fits my client, not force my client into a loan box that is not in their best interest.†says Mack. If you have any questions regarding the current mortgage market, feel you could benefit from an evaluation of your current mortgage loan and or any loan program someone else has proposed and want to make sure it’s really something you should be involved in you can reach her directly at 303-691-5058.
