You Can Be Mortgage Free SOONER Using the Rapid Mortgage Paydown “RMP” Strategy
Imagine this; your phone rings. It’s your mortgage lender offering you an incredible deal: they will lower your interest rate and give you two payment options. Both options have NO upfront cost to you, and NO fees are rolled into your mortgage.
The two options are:
- Your monthly payment remains the SAME but the time left on your mortgage will be reduced by several years.
OR:
-
You enjoy a new, lower, monthly payment but the clock will start over. For example your 30 year mortgage with 23 years remaining resets to 30 years.
Essentially they are offering you a No Cost Refinance with one extra, VERY powerful step. I call it the Rapid Mortgage Paydown “RPM” strategy. It works like a dream. More later.
Getting back to the offer, you ask … “Am I OBLIGATED to make the new payment?”. Their answer: “no”.
By choosing option One you could be mortgage-free several years earlier than on your current path AND you could save thousands of dollars in interest. And as if that isn’t enough you’ll also enjoy FLEXIBILITY and PEACE OF MIND by being able to make the new, lower payment in case of an emergency. After all sometimes: “life happens”.
You might be wondering if this passes the “sniff test”! What’s the catch? Can you really save money and shave years off your mortgage with no hidden fees? Is there anything hiding in the small print?
The Truth Will Set You Free
After 22 years of originating hundreds of true No-Cost Refinances, I’ve seen people pass them up because they don’t know how to crunch all the numbers or understand all the benefits.
It saddens me when it happens, and my mission is to help you keep more money in your pockets and pay off your mortgage sooner! But unfortunately every lender’s definition of a “NO-COST” loan is different. In my view, a refinance can only be described as a TRUE No-Cost Refinance when all non-recurring closing costs are offset by a lender credit of the same amount or more and no fees are rolled back into the loan.
The RPM Strategy – Food For Thought
We’ll get into more detail soon. But first, let’s talk about YOU, and the value of your time.
If you could refinance at No Cost to you and save (let’s say) $20,000* in interest AND shave months, or even years* off your mortgage, and the entire project took 5 hours* of your time – would it be worth it?
Seriously, if someone offered you $20,000 for 5 hours work* would you take it? That’s $4,000 an hour*. Tax free. For most of us it’s a no-brainer!
Yet some homeowners feel it’s too complicated or time consuming. For the most part it’s not: a professional Mortgage Advisor has the tools and resources to do the work quickly and painlessly for you.
Common Misconceptions About No Cost Refinances
- “It’s too much work and too much hassle”
Either you haven’t considered the “hourly rate” above or you are currently earning the big bucks : ) - I’m seven years into my 30 year fixed mortgage. If I refinance again I’ll reset the clock back to 30 years”
If all the conditions below apply you will definitely be mortgage-free sooner than on your current path. - “I’m going to sell my house soon, so it’s not worth the effort”.
As long as ALL the criteria below apply you will definitely save money. If you sell your home soon you simply won’t save as much. You may “only” profit by hundreds instead of thousands of dollars before you sell.
Whatever happens, know this: you will NOT lose money. You can’t lose money you haven’t spent. You have the magic of mathematics on your side.
Your Two Options:
It’s worth repeating: if you refinance at no-cost you have two options.
You can either:
A) Enjoy the monthly savings – knowing that you’ll add several months, or years, to your mortgage IF you remain in your house long term.
OR:
B) Refinance, and instead of spending the payment savings you continue to make the SAME payment you are making now, on the new loan, at the new, lower, interest rate
A Fact is a Fact
If you qualify and ALL the conditions below apply you WILL profit from a TRUE No Cost Refinance. Even with just a 0.125% reduction! And in case you are wondering: yes – this IS factoring in “re-setting the clock”.
But don’t take my word for it. All I need is some numbers from you and I’ll prove it.
In order for this to work the following conditions must apply:
- Your current mortgage is a FIXED, fully amortized mortgage (usually a 30 year fixed)
- You refinance into the SAME term (ie: a new fully amortized 30 year fixed)
- The interest rate on the new mortgage is LOWER than your current rate
- You make the same monthly payment on your new mortgage as you are currently obligated to pay
- The transaction is a TRUE No Cost Refinance – meaning you pay zero for non-recurring closing costs
- Your new loan size is NOT increased in order to “fold in” any fees
FREQUENTLY ASKED QUESTIONS:
Q: “Should I hold off? I’ve heard rates may go lower”
A: True – they MAY go lower. Or they MAY go HIGHER. On the other hand they could STAY THE SAME. The truth is NOBODY knows – and that includes those highly paid talking heads on TV or online.
You see mortgage rates are tied to stocks and bonds, which are in turn driven by NEWS and GLOBAL incidents. If, God forbid, there was a major terrorist incident, stocks would tumble and the bond market would go up in price. And because rates are tied inversely to bond prices mortgage rates would go down.
NO-ONE has a crystal ball so NO-ONE can predict where mortgage rates are going. Don’t buy into the hype and so-called “predictions”
Q: “I don’t mean to press the point, but are you sure? I’d hate to go through the process again in six month’s time if rates do drop”
A: If you have the opportunity to refinance at no-cost and with the opportunity to save, let’s say $200 a month, why wait and gamble unnecessarily that rates MAY drop?
There’s only three possible scenario’s.
If you refinance at no-cost and if:
- Rates GO UP – GREAT! – you protected yourself from “overpaying” $200 a month* for years – possibly decades. That’s a lot of money you could have lost. You made a smart move and hedged your bets. Nice!
- Rates GO DOWN – GREAT! – you still made the smart move. Being savvy you HEDGED your bets. You enjoyed the $200 a month* savings, and now rates are lower you can refinance again at no-cost. There is no payback time to worry about because the previous refi cost you $ ZERO! Beautiful!
- Rates STAY THE SAME. OUCH – you lose $200 a month* for the life of the loan. And let’s say after 6 months of flatlining rates, you decide they are going nowhere and it’s time to refinance – that six month wait cost you $1,200. PAINFUL!
* The “$4,000 an hour / $20,000 savings” are for illustration purposes only. Every scenario is different.
Summary. A No Cost Refinance COUPLED WITH THE RMP STRATEGY Could Be Your Path to Financial Freedom!
I know of no other financial opportunity with only upside – and no downside. With zero cost and zero risk it’s a no-brainer that everyone who qualifies for should take advantage of.
Need more information? Check out the RMP Frequently Asked Questions
If you own a California home and would like more information about a TRUE No Cost Refinance call me today on my cell: (408) 533-2467 to discuss your own, unique mortgage situation. My goal is to help you save money and get the best rate possible. Call me today and I’ll gladly run the numbers for you.