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In today’s real estate market, working with a knowledgeable Realtor is a must. I strive to provide my customers with the best service for a positive real estate experience. My network of 30 offices enables me to perform in any area of Florida.
As a Realtor with access to state-of-the-art marketing and technology, I am able to deliver proven results on a variety of real estate transactions.
I will work with you to get the best possible lending solution to suit your needs. I know the major reason why mortgage lenders stretch payments for home loans and penalties. Its because these lenders want to induce their clients to stay with them, and this serves as a method for them not to lose clients. Home loan lenders use two methods to calculate the penalty and, since there is more than one way, you can be sure they will use the method that yields a higher amount for them
– Number of months interest penalty (2, 3 or 6 months)
In computing this, you will need to separate the interest piece of your mortgage payment from the principal, and then multiply it by the number of months elected for the penalty.
A good example would be this: When a 25 year, $200,000 mortgage is pegged at 5.4%, if it is paid off after 30 months, the monthly payments are $1,209.17 and the interest portion on the 30th month is $846.18. In using a 3 month penalty, that number is multiplied by three to ($846.18 X 3 = $2,538.55) come up with the total penalty.
– The rate difference for the balance of the term of the loan.
This penalty is also called the rate differential. This penalty is a bit more complex calculating, however it is used when the current rate, which would be in force when you break your contract, is lower than the rate you got when you negotiated the contract. In this scenario, the penalty is computed to represent the difference between the two mortgage interest totals over the rest of the term. For example,
If we have the same mortgage, $200,000 25 year amortized 5 year mortgage with a rate of 5.4%, the monthly mortgage payment is pegged at $1,209.17. If the homeowner breaks the contract after 30 months by prepaying the loan, the lender will charge a penalty because he can now only lend at the current interest rate, which, 30 months after the old loan, will now be at 4.75%.
Whether you are looking for a single family home, commercial or luxury property, I can assist you with the purchase or sale of your real estate investment.