This is a good story with a happy conclusion. Borrower BEWARE of Loan Officers trying to sell cash-out refi so they can earn BIG COMMISSION versus a better solution.
Happy conclusion: Borrower Cheryl is saving $20k+ in fees and $1,362/month in interest by getting a HELOC versus cash-out refinance.
Scenario: Cheryl wanted $80k cash-out to pay off credit card debt. Her local Loan Officer contact through her networking group worked at a broker recommending a cash-out refi. Loan details: $700k value, $450k loan, 652 credit score, current rate 2.875%.
Loan Officer’s suggestion: $100k cash-out, with total $550k loan at 6.50% FHA program, so paying FHA MIP (Mortgage Insurance Premium) and monthly MI (Mortgage Insurance).
Better solution: HELOC at 3.99% for 12 months, no lender fees. When rate adjusts in 12 months, prime + 3.50% margin = 11.25%.
Don’t let an inexperienced and greedy Loan Officer take advantage of borrowers when much better solutions are available by Dan the Man for Mortgages. Call 714-310-4162 for more info or quotes.
Rave review on Google:
“When I was shopping for a mortgage lender, Dan Stone introduced me to a lender who gave me the best rate of all the other quotes I received. Dan is very professional and a great person to work with. I was a first-time home buyer. Dan gave me so much good information related to mortgages.” -Selva M.
“When I was shopping for a mortgage lender, Dan Stone introduced me to a lender who gave me the best rate of all the other quotes I received. Dan is very professional and a great person to work with. I was a first-time home buyer. Dan gave me so much good information related to mortgages.” -Selva M.