As you may have heard in the news, SHORT TERM rates are down! This is good news for those of you who have Home Equity Lines of Credit (a.k.a HELOC’s). We are seeing a huge shift in the minds of consumers. They are paying closer attention to their loan terms, interest rates and total interest paid over the life of the loan. Many clients are coming to us wanting to consolidate debt and set a budget to make sure they reach their financial goals. They also want to feel like they are doing something in this uncertain market.
We all feel like that right now. When things are good, we spend and don’t give much thought to the repercussions. We simply want to make sure that we can make the monthly payment every month. When things aren’t so good we start looking at the details. Recently, there has been a behavioral shift to want to pay off debt and feel more comfortable. This makes total sense. With home values dropping, we as home owners can no longer depend upon appreciate as the only way to increase our equity. We recently came across a program that saves hundreds of thousands of dollars in interest payments and shortens the loan payoff time dramatically. It does NOT require extra money. You do have to be disciplined and follow the program but if you do the results are AMAZING. For example, here is someone doing the program (they are allowing me to publish their information). Purchased the home for $965,000 in April of 2005 (top of the market). The value is about $850,000 currently if it sold. The loan is an interest only. At the end of the 30 year term, the client will have paid over $1,200,000 in just interest!!! By doing this system, they will cut the loan time down to a little over 12 years and SAVE $569,724.54 in interest without changing any of their current spending habits. If you want more information or an analysis done on your situation, email or call us. You will be blown away.
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Alyssa Duggan
Real Estate Broker
Realty World & Cambridge Residential Funding
The Duggan Team
Convenience. Experience. Results.
650.678.5050 cell
925.277.3500 office
925.406.0925 e-fax
www.DugganTeam.com
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