Since the Fed is cutting the interest rate, it is great for refinance your mortgage especially you have an interest only loan. I called the number on a flyer in my mail, and I thought that I got the best deal. I only had two requirements on ht new loan: 1. No more interest rate only loan, 2. No pre-pay penalty. After two and half months, I was quoted as:
The bank is offering two programs to you both are great!
Which would you like, see below and let me know if you have any questions.
Personally I think the 1st program is the best savings, lowest margins:
A. 3.7 fixed with a margin of 3.1. This means her payment the first year is
2092,2nd year is 2894.00,3rd year, is 3111.00,4th is 3345.00,5th is
3595.00
or
b. 5.25 fixed payment 3230.00
Since I plan to sell my house in the next three years, I pick #a. Guess what? My monthly payment is $4400 if I want to pay off $350 principle. Plus, I have a three years pre-pay penalty. And guess what??? Wachovia is the lender!!! It's my fault that I didn't do my homework and do a little research on Wachovia. My advice is: don't believe those brokers. They are worse than used car salesmen.
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