| Structuring
a Loan that Saves You Money |
You'll make hundreds of decisions on your next loan, or someone will
make them for you. Decisions like: how much to put down; paying points;
paying mortgage insurance monthly, prepaying or rolling it back into
the loan; when to lock a rate and when to wait; fixing the rate for
1 yr, 3 yrs, 5 yrs, 7, 10, or more; paying it all off in 15 yrs, or
30, or 40, or more; paying principal and interest instead of just
the interest; along with quite a few more. And you can be sure of
two things: that each correct decision can save you money and there
is no one correct answer.
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| How do I use
Strategies? |
Used correctly Strategies save money over the term of your loan and
they come in two flavors. Some strategies rely on an educated guess,
and making the most educated guess is what you should be doing. While
other Strategies are much easier, black and white, actual dollar comparisons
of the savings prepared and delivered right to your fingertips by
the Wagner Group.
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| Educated
Guesses |
For example very few people make it to the end of a thirty year loan,
they might move (the national average on this alone is 7 years!),
refinance, take out equity lines, lock a variable rate, etc. etc.
The more closely the Wagner Group can help you predict what you are
likely to do in the coming years, the better you can save on your
next loan. A loan that really saves in years twelve through thirty
(your average 30 year fixed) has absolutely no benefit for a couple
who can't wait to downsize as soon as the kids are off to college
in six or seven years.
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| Simpler
Savings |
Other strategies are easy to see, once you've been presented with
a clear concise printout of the options you have. Such as: varying
your down payment; fixing the interest rate for various terms; allowing
now for future improvements; locking or not locking rates. The correct
answer for you will become clear, but not before the research is completed.
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| Combining
Strategies with Factors |
Getting the most from a loan is a two step process, first each lender
has programs that emphasize different factors of your situation -
for example one lender places great emphasis on a minimum employment
history at one place while another lender places little or no emphasis
on your employment history, (for a more in depth explanation see Loan
Factors.) There are hundreds of factors to consider and once they
start relating to each other thousands of relationships. You want
to be looking at the lenders who have programs that your personal
situation takes the greatest advantage of. The next thing to consider
is how to get the most for yourself from those lenders.
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| Looking
for an easier way ? |
If just thinking about all the different Loan Factors and Strategies
makes your head spin, you are not alone. Our loan Matrix software
compares thousands of options in minutes and spits out the best dozen.
A loan officer then culls the options down to the best three or four
and prints a comparison for you. If you want to understand some of
what goes into the software visit the Loan Matrix Program Section.
Or better yet just try it and see how pleasantly surprised you can
be.
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