Borrower escapes 10-year interest-only purchase loan

Mortgage adviser: Alex Greer. Property type: Singlefamily residence in San Mateo. Appraisal value: $1.35 million. Loan type: Jumbo 30year fixed. Loan amount: $1 million. Rate: 3.750 percent. Backstory: Ten-year interest-only purchase loans offered by the big banks can seem very attractive when it comes to jumbo financing in the high-priced market of the Silicon Valley.

Small payments, low interest rates and a 10year interest-only period can make any borrower think they will have plenty of time to figure things out. But for many borrowers who purchased after the recession, that time is quickly coming to an end.

In this scenario, the borrowers were six years into their 10-year interestonly period, but they were becoming increasingly concerned about the adjustable rate and how much it had increased.

Seeing their adjustable rate increase by more than a percent in the past 18 months alone, the borrowers contacted Alex Greer because they knew it was time to find a longterm solution.

Having dealt with this situation in the past, Greer knew exactly what would help the borrowers and worked quickly to submit to the lender. With a 741 credit score, roughly 75 percent loan-to-value ratio and great income, the refinance loan funded 28 days later — freeing the borrowers from their mortgage worries for the next 30 years with a fantastic rate.

Alex Greer, the Mortgage Outlet, (408) 352-5147, agreer@

themortgageoutlet.com.