What do you mean blended rate? - Affordable Interest Mortgage

What do you mean blended rate?

When you look at your interest rate on your mortgage, lets say 3% – 3.5% you tell yourself you can’t refinance because the rates are higher today.  But you have all this equity in your home.  It has appreciated \$40,000 – \$80,000 or more in the last couple years.  How can I access my equity without having to sell.  When I consider that I have some credit card debt and with all the Feds Rate hikes I am now paying 20-21% and those payment are making it hard to make ends meet.  Between my income and my outgo, it seems like there is nothing left.

Many clients are learning that they can take advantage of refinancing their home, paying off their current credit card debt and saving between \$500 – \$750 a month.  When you do this what you will see is that your actual rate for all your debt is now going to drop from 15-16 (average of your mortgage and credit card debt) to 4-4.5%.  This is called a blended rate.

Let me give you an example.

 Current Mortgage Balance / Interest Rate / Pymt \$461676.00  /  2.875%  / \$2614 Pi Pymt Credit Card Debt: \$31,903.00  /  15%  / \$545.00 \$17,477.00  /  15%  / \$346.00 \$16,990.00  /  15%  / \$337.00 \$15,045.00  /  15%  /  \$318.00 Total Debt \$543,091.00 / 10%  /  \$4160.00 Original Value \$600,000 Appreciation average last 2 years 8% – conservatively New Value \$699,840.00  / 6.99%  /  \$3613.00 New loan to value 78% LTV New payment after paying off mortgage and credit card debt will be lowered \$547.00 month. The blended rate would be 4.63%. That’s a savings of over \$6500 a year.  Helps to make ends meet.

This is a real example of a client’s numbers and what they save.  While your numbers may be different, we are seeing many clients realize that with all the Feds rate increases, they can pay less interest and save more money.

So now is the time to relook at all your debt, all your payments and all that excessive interest you are paying and see how to have some breathing room at the end of the month.

Call us @ 720-895-0500 for your specific numbers.

Disclosures:  NMLS 298191, Regulated by Dora, Equal Credit Lender AZ NMLS MB1021756, WY MBL 4594

More To Explore

News

06/11/24 Your Money Matters Mortgage Insights

06/11/24 Your Money Matters Mortgage Insights In this episode of Your Money Matters, I talk about mortgage options for First-Time Home Buyers. First, most people don’t know the details of the definition of what constitutes a “First Time Home Buyer,” so I provide the information and the nuances. I also provide the answers to these

News

05/28/24 Your Money Matters Mortgage Insights

05/28/24 Your Money Matters Mortgage Insights   In this episode of Your Money Matters, I talk about mortgage options for First-Time Home Buyers. First, most people don’t know the details of the definition of what constitutes a “First Time Home Buyer,” so I provide the information and the nuances. I also provide the answers to

Scroll to Top