Montage broker: Liz Bayer, ProMortgage.
Property type: Single-family home in Napa.
Appraised value: $1.4 million.
Loan amount: $548,000.
Loan type: 15-year fixed.
Rate: 2.526%.
APR: 2.589%.
Backstory: A couple approached me about refinancing their home and they wanted to move into a 15-year fixed loan as they are now looking toward their retirement with the goal of being ‘mortgage free’ in their golden years.
Their current loan balance was $558,000 and I wanted to get them into the lower tier loan amount for conventional lending which just increased (thankfully) from $510,400 to $548,250.
Although their current loan balance of $558,000 loan amount is still considered ‘conventional’ since Napa county has higher allowed loan limits up to $816,500, the rate pricing is not as favorable as the lower tier loan level.
So, my borrowers were willing to pay down the loan to the $548,000 to get the better rate pricing. They had 25 years left in their old mortgage and the net financial improvement will be more than $300,000 in savings between their old mortgage and their new mortgage to move into a lower rate with the shorter term! Now, that’s a great way to say goodbye to 2020 and bring in the New Year!
Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.
