Anna and Nick are previous mortgage clients of Direct Mortgage Loans. They knew they had a great experience with their home purchase but wanted to know if they could benefit from a refinance. With an opportunity to reduce their mortgage payment, they jumped on it and locked-in their lower rate.
About The Client:
Anna and Nick are a married couple with two children. Anna is a W-2 employee, and Nick is self-employed. They built their forever home and wanted to know if refinancing could lower their monthly mortgage payment. Their monthly mortgage payment consisted of the following:
- Loan Amount: $280,598.51
- Interest Rate: 3.5%
- Total Monthly Mortgage Payment: $1,771.32
Recognizing that rates are low, and that her husband wanted to live in their house forever, Anna reached out to learn if refinancing could lower their monthly mortgage payment. She shared that she was currently overpaying their mortgage payment each month, to pay-off sooner, rather than later. Anna was open to a 15-year term if the payment was around $2K per month.
Anna and Nick completed their refinance application which took around 15 minutes and submitted their documents online (30 minutes). Within 1 business day, they were notified of the following refinance options:
- Refinancing into a 15-Year mortgage would lead to a roughly $2K per month mortgage payment (including principal, interest, taxes, and homeowner’s insurance).
- Refinancing to a 30-Year mortgage would reduce their mortgage payment to $ per month (including principal, interest, taxes, and homeowner’s insurance).
While the decision was Anna and Nick’s, their Loan Officer advised that with Nick’s self-employment it may be more beneficial to refinance into a 30-year term to allow flexibility in case of any unforeseen setbacks. The Loan Officer also shared that Jane could continue over-paying their mortgage (should they choose) to pay-off the loan sooner.
Once Anna and Nick made their decision, they signed their electronic documents, and were scheduled for closing.
1 business day before closing, Anna was notified that there was a lien on their property, and that she was not on the deed to the house. The lien (applied by the state for a late tax payment) had been paid by Anna and Nick. A bank statement showing the payment to the state verified that the lien has been paid in full, and the title company organized so that Jane could be added to the deed with Nick.
Show the Results:
Anna and Nick refinanced their mortgage in 14 days. On the day of closing, they visited the title office to sign the legal documents binding the contract. They were able to skip their next month’s mortgage payment. Their new mortgage cost them $0 out of pocket.
Below is their new monthly mortgage information:
- Loan Amount: $288,000.00
- Interest Rate: 2.5%
- Total Monthly Mortgage Payment: $1,588.25
- Total Monthly Savings: $183.07
“We are so grateful for the speed and professionalism provided by everyone at Direct Mortgage Loans. With our monthly savings, we can continue to comfortably over-pay our mortgage to pay-off our loan sooner, while giving away less money to interest payments.” – Anna and Nick