Well, I will admit that the catchy title is a bit exaggerated, but not by much. This posting will deal with the world of home mortgages and the crazy games that are played to save money. When I purchased my share of 121-123 Cortland, I inherited the 30-year fixed mortgage that the Streiffer's (121) had purchased with the Shimetz's (123). We had a 30-year fixed rate of 6.625%, which back in 1999 when the mortgage was intitiated, a pretty good rate.
Mortgage rates have been low for the past year and a half or so, but I was always a bit overwhelmed by the idea of refinancing the mortgage, that I just avoided it. That was until, in February 2004, my colleague and friend Shahana referred me to her broker Mark B. of Wymac Capital. He helped me through the process and just like everything in life, was much more managable once I understood the why's and how's of what Brian, Meredith and I were doing. There were lots of papers to submit, documents to photocopy, papers to sign and an apprasial of the building done.
In the end, Mark, locked us in at a 6% 30-year fixed mortgage, saving us $300 a month. We decided to continue to pay at the previous amount, thereby paying down the principal $300 a month, which meant that we would pay off the mortgage in 21.75 years instead of 30. In addition, the entire process cost us NOTHING. We did not pay a cent to save $300 a month. Great!!
This past Friday, Mark left me a message on my school voicemail telling me that on Thursday the 23rd of September, there was a three hour window in which 30-year fixed mortgages rates dipped to 5.75% and Mark locked us in at that rate. The process this time would be the same, except even easier. Most of the documents that we submitted back in February are still valid and the only things we need to submit are paystubs and bank statements.
Mark had the documents delivered by courier service on Saturday morning and after looking at them, it looks like the quarter point drop in the rate will save us a grand total of $54 a month. Not that much in the grand scheme of monthly life, but it will mean we pay off the mortgage even quicker than at the 6% rate. Saving money:very cool.
ONE FINAL NOTE: I have only ever spoken to Mark B. on the phone. Hopefully, someday I will get to meet the man.
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