Borrower purchases points for a lower rate

Loan officer:

Scott Baer, California Mortgage Advisors.

Single-family

Property type:

residence.

Appraised value:

million.

Loan type: Loan amount: Rate: APR: Backstory:

$1.125 20-year fixed-rate.

$483,500.

1.99%.

2.10%.

Our client had dreamed of paying off their home loan early for many years. They had a 30-year mortgage and were making additional principal payments when they had extra money available. Even with these additional payments, they did not see much reduction in their balance.

They were really hoping to pay off their mortgage and be debt free during their retirement.

I worked with the client to secure a 20-year fixed loan which funded within 21 days of the full application. Their payment was slightly higher than they were paying on the 30-year, but still allowed them to make additional payments to the principal when they could.

After reviewing the options with me, the client chose to pay points and buy the rate down to a very attractive 1.99%.

Paying points is not the best option for every client and requires a careful conversation to weigh the costs and benefits.

By asking the right questions and learning more about the client’s goals, I secured a substantially lower rate that allowed the client to pay off their mortgage 10 years earlier.

This is a great time to start mortgage planning with a knowledgeable advisor. Rates are currently at near or all-time lows, but that is expected to change as the Federal Reserve slows or “tapers” the pace of its bond purchases.

$2,750,000 3130 Eton Ave Sun 2-4:30

This home has a confluence of modern & elegant design. It has been refreshed w new kitchen, baths. Main home: 3BR/2.5BA, lg primary. Stylish ADU w 1BR/1BA. A fine home like this rarely comes on in this location. 3130eton.com REBECCA ERDIAKOFF#01808352 510-418-1578