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Weekly Interest Rate Update
In the Spotlight
Credit card companies are raising the minimum monthly payment soon!
Currently credit card companies set the minimum monthly payment
at about 2% of the outstanding balance. MBNA, Citibank, and Bank
of America have announced they are increasing minimum monthly payments
on credit card balances and others are expected to follow suit in
the near future. If in fact there is a doubling of the minimum monthly
payment from 2% of the balance to 4%, be prepared for your minimum
credit card payments to double. Start planning now, so you are not
caught off guard.
Consider taking out a home equity line of credit to consolidate
your credit card payments into one monthly payment. The great news
is that there is a home equity line of credit that allows you to
transfer all or a portion of your equity line balance to a fixed
rate loan with a choice of 30 year amortization due in 15 years,
20 year loan, 15 year loan, 10 year loan, and a 5 year fixed program.
Many of my clients have found this a great way to lock in the interest
rate on their equity line balance in a time of rising interest rates.
With equity line rates as low as Prime minus .50%, now is a great
time to transfer your high interest rate credit cards and/or existing
home equity line of credit.
Call (760-310-6988) or email
me if you would like to see if you qualify for this excellent Home
Equity Line of Credit.
Mortgage Analysis
Should you or your client pay ‘points’ to get a lower
interest rate?
When you pay "points," you pay interest in a lump sum
upfront to get a lower rate on your fixed rate mortgage. Each point
costs 1% of the mortgage amount. The more points you pay, the lower
your mortgage rate. So, which is the best for you? More points and
a lower rate? Or fewer points and higher rate? To decide, you need
to consider: (1) Whether you can afford to make the upfront payment
now for points. (2) The length of time expect to have the mortgage.
The longer you plan to have your mortgage, the more it makes sense
to pay for points now because you'll have a long time to benefit
from the lower interest rate and payment.
I provide at no obligation a mortgage point analysis report which
calculates how long it will take for paying points to make sense
for your individual situation.
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This weekly interest rate update newsletter
is offered to you courtesy of Peter Gooler, Sr. Mortgage Consultant.
I’m available via phone (760-310-6988)
or email to discuss your
individual situation.
Have a great weekend!
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