Page 17 - May 2021 Issue.indd

To further make the point, assume you are, prepaid interest. You end up paying Ask plenty of questions!
sell your home in 12 years. We know interest on interest.
Mr. Rowe is Vice President/Lending for
your $2,500 would compound to $5,000
Second, it is not the rate that you are Bay Capital Mortgage Corp. with offi ces
if you invested $2,500 instead of paying
repaying it is the payment. As we showed in Easton and Annapolis. He has lived in
the point and save $34 per month. We
in the example you need to calculate the Caroline for his entire life and supports
also know that it will take 73 months investment return to determine if the
or six years to break even if you did benefit justifies the expense or is the the county by volunteering in a variety of
pay the point and lower the payment ways. He currently lives near Greensboro
juice worth the squeeze. with his wife Jeanne and daughter Kelsey.
$34. So, you will end up saving $34 for
71 months, (until year 12) when you And third, consider the new term
sell the house. You will save a total of of repayment as a possible benefit
$2,414. Again, I ask, would you rather of refinancing. For some borrowers
have $2,414 in 12 years or would you paying a higher payment may justify
rather have $5,000? refinancing if the return is reducing
the term of the mortgage. But only
When comparing interest rates, it is move forward with this strategy if the Perfect Toucherfect ouch
critical that you also consider closing

benefit of paying extra principal on your
costs to acquire that rate. Some loan existing loan does not give close to the Hair Design
officers will work hard to play along same reduction in term.
with the wishes of the borrower which
is to get the “best rate” they can get. As interest rates trend upward ever 1143 Shore Hw y . Denton
1143 Shore Hwy. Denton
Closing costs should be the primary so slightly the benefit of refinancing
-47
-2
83
3
41
9
0
question asked when presented with will evaporate for many borrowers. 410-479-2833
an interest rate option, especially when But it will not slow down those who Ann Draper & Lisa Young (Murray), Stylists

refinancing and the easiest way to make need business to keep their lights on,
ver
y
y
O
s
Over 30 years
ear
30

a fair comparison is to tell the lender mortgage payments made and food on combined experience
combined experience
that you want to know what the rate their table. Be aware and be prepared
will be with 0 points and make that the that solicitations for refinancing will
constant in your conversations with all increase, not decrease. The pressure Appointments Appreciated
App
App
reciate
d
ointments
loan offi cers. is on for some lenders to keep loan Walk-Ins Welcome
Walk-Ins Welcome
applications in their pipelines. You need
Using this strategy during your rate
to be prepared to ask plenty of questions T ues d a y - F r i d a y 9 a.m. - 7 p .
Tuesday - Friday 9 a.m. - 7 p.m.m.
inquiry process will quickly flush out the

Wed., Closed; Saturday 9-noon
loan officers who are more concerned and remember, regardless of what you Wed., Closed; Saturday 9-noon

may be told, the most important factor
with making the sale than providing
is the payment and not the rate. And
appropriate investment advice. It will
of course, how much you will spend to
also tell you whether it makes sense to
get that rate.
even consider refi nancing.
This discussion of rates and points
is based on a purely interest rate
perspective and does not necessarily
address the actual amount of the new
payment, which will vary based on the Because you deserve qqualified, llocal representation
term of the new mortgage. Th e shorter
the term the higher the payment. when managing life’s important issues.
I have two basic rules that I feel ? ESTATE PLANNING
everyone looking to refi nance should 300 Market Street
heed. First, if you must pay points to ? RESIDENTIAL & COMMERCIAL Suite 104
justify refinancing then you should REAL ESTATE AND SETTLEMENTS Denton, Maryland
not refinance. Some will justify paying ? LLC FORMATION & BUSINESS LAW 21629

points by just adding them to the new ? MUNICIPAL & ENVIRONMENTAL LAW
loan amount, in other words, borrow ? GENERAL LEGAL COUNSEL 410.310.1774
it. This strategy makes as much sense shayman@mlg-lawyers.com

as using a cash advance on your Visa Our attorney, Patrick Thomas, and our Settlement www.mlg-lawyers.com
credit card to make payments on your Agent, Sandy Hayman, are available to travel to your
Discover Card. Remember what points preferred location.
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