San Francisco Chronicle - (Sunday)

Price Point

This custom estate in bucolic Sonoma would make an ideal vacation home.

- Dominique Stevens, Mayfair Mortgage Advisors, 4152508908, dstevens@mayfairmtg.com.

“When purchasing a new home, many clients head to their retail bank instead of reaching out to a local mortgage broker. The retail bank can offer intereston­ly loans with low payments and low rates; however, the homeowner quickly realizes that the monthly payments are not paying down the principle, so for the longterm it is best to get out of these arrangemen­ts.”

Mortgage adviser: Dominique Stevens, Mayfair Mortgage Advisors.

Property type: Singlefami­ly home in Palo Alto.

Loan amount: $1 million.

Loan type: Fixed rate at 3.375%.

Loan terms: JUMBO 30year fixed rate.

Backstory: Our client had purchased his new property in Palo Alto in 2018 with an adjustable­rate intereston­ly loan. These adjustable loans offered by the large retail institutio­ns allow borrowers to make milliondol­lar purchases that can seem quite attractive. When purchasing a new home, many clients head to their retail bank instead of reaching out to a local mortgage broker. The retail bank can offer intereston­ly loans with low payments and low rates; however, the homeowner quickly realizes that the monthly payments are not paying down the principle, so for the longterm it is best to get out of these arrangemen­ts.

After realizing that this intereston­ly loan was not paying down the principle, the client contacted our brokerage to find out about other options.

Luckily, interest rates on JUMBO 30year fixed mortgages are at alltime lows. Our borrower has excellent credit, a very secure wellpaying job, and after three years of homeowners­hip, he has 35% equity in the home.

We were able to secure our homeowner a 30year fixed rate loan at 3.375%, a great rate that the borrower can have for 30 years to come.

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