Description: The article is talking about amerihome mortgage login. We will be indicated the ways on how to use the home equity line, the author shares some details about his mortgage and shows us that many times people get into situations where they have a lot of debt and at this time, they may go ahead and improve their cash flow.
This is Stewart Rosenbloom, good morning, McGraw, good morning, Kelly, yesterday on a different subject, but you brought up something interesting and something that I’ve thought about, but you’ve never talked about and that is this.
If you have 10 years or 20 years left on your mortgage and you refinance, then you go back to 30 years again, so you’re back to where you started paying off the other thirty-year mortgage, that happens very often, but you can always prepay it without a penalty.
Many times people get into situations where they have a lot of debt and they want to go ahead and improve their cash flow, so they consolidate the debt, they go for 30 years and then they prepaid in a 10-year term, so it’s about a half percent interest differential between 15 years or 10 years, so they take the 30-year one, they paid the extra half a percent and they pay the extra money in that 10-year period in case they get into a bind.
They can always revert back to the 30 years, it makes life a little bit more comfortable, how much of that? I am thinking, because when I have the money, do I want to pay down my debt or to want to go and buy this new big-screen TV.
But people do it, we do have a customer that we did the reverse, they had 27 years left, we consolidated the debt, gave them a 15-year loan and their payments went down $150 a month, so every situation is different and it depends on your particular scenario and what your cash flow is.
When they talk about it, you can get a 30-year one, you can get a 20-year and a 15-year, so what do you tell? How do you counsel people? You can get any term, you can get a 7-year, you can get a 14-year, you can get a 28-year loan, you can get any kind of term that you want the interest rate that interest rate differential between the 30 and 25 is not to the rates.
Then a 20-year you get about a quarter percent a 15-year about a half a percent more high lower on the interest rate low, so it’s going to depend on individual financial, you know obligations that a person’s going to have today.
We’re no longer necessarily living in the world where everybody wants to pay off their mortgage right away as soon as possible. I think quality of life definitely plays in those decisions, but when you have the opportunity to make the lower payments, you may go ahead and do it.
If I have a customer that comes in and there’s no difference to him financially whether he’s going to pay a fifteen year rate, a note or if he’s going to pay a thirty year and now you say I’m going to push him, but if I talk to him and I sense now that fifteen year payment is tight.
But I’m going to go ahead and tell maybe a twenty year, maybe a thirty, let’s look at all three numbers very often especially with today’s world where a debt, mortgage rates or first mortgages are the only interest, that’s tax-deductible any more home equity lines of credit are no longer tax-deductible.
The interest you pay on those right which is very interesting, because I wonder if don’t go there, hopefully our listeners know what I’m talking to that over here, but when you take out a home equity line of credit, be very careful who you’re paying off and what you’re paying off, because it’s no longer tax-deductible.
So the interest is no longer tax-deductible and credit card interest rates in our long tax-deductible, next week, the Federal Reserve is meeting and they’re poised to go ahead and raise those interest rates which the first vehicles to get affected are the home equity lines.
The second mortgages they’re all the same home equity lines of credit card debt, so now all of a sudden, you’re going to see these numbers pop up and you don’t get any tax benefit, so if you have 5% of the home equity line, even if you got this last year or five years ago, it’s not going to become tax doctor, that’s important to know it was a low two years ago.
But it’s going up now, it’s not locked in and most of those home equity lines their interest only, there’s no principal being paid, I had a customer that was paying on it for 15 years almost and all of a sudden, he didn’t know it became due and he got a letter in the bank and all of sudden, they’re advertising his remaining schedule at 12%, no tax deduction on the interest, you’re in trouble.
The balance was the same exact balance is what he had when he started, you’re known as the No Fee guide the bagel loan Google, you’ll get Stewart’s phone number, but these 15-year mortgages, these twenty-year mortgages still have no fees and the beauty of it especially.
If you’re going to consolidate your home equity loan and other debt, you can reduce the remaining term you have, so aside from getting a fixed interest rate aside from getting the tax benefit and aside from getting a lower rate than what you had previously on those debts, you consort in the term.
We’re talking about saving tens of thousands, if not hundreds of thousands of dollars, so it’s a big deal, you should remember when you have a mortgage or you have these debts, you pay interest first, it’s not evenly divided every month, so when you reduce that term, the principles gained, pay off quickly, that’s why he’s the best three, Stewart’s amc.com, if you have any questions google the bagel loan and his number will pop up, thanks for your time.