In life, when you decide what to ask for, the salesperson will usually provide it. Usually, it is because the salesperson just wants to close the deal and get paid. In my experience with mortgage loans, the best solution is often NOT what you asked for.
Example: Katie asked to refinance and take cash-out to remodel her home.
Solution: Refinancing the first loan with the same balance, or a rate and term loan, provides .75% lower rate on the majority of the balance. At the same time, getting a low interest rate HELOC 2nd loan at crazy low rates in the 3’s, along with no closing costs, is a much better solution.
Since Katie is working with me, she will save a lot more $$$$$ over the life of her loan(s), versus the lender she planned to use. I will provide the lender(s) with the lowest rate 1st loan and 2nd loan. She will enjoy:
- Lower overall payments, versus one loan
- Extra money to pay-off the 2nd loan faster
- 2.50% 1st refi rate & 2.546% APR for the next 30 years
- HELOC 2nd at 3.75% rate & APR, with 1.99% & APR teaser rate for 6 months