The Official Miami Travel Site™
Stay on top of all the local news with our weekly newsletter. View a sample »

Stay Current Throughout The Week
RSS feeds The MB411 feed keeps you informed as news happens. SEE ALL FEEDS »
Best Deals on Miami Beach 411
Miami to Orlando Bus - $35
Transfers Between Miami & Orlando.
Free Wi-Fi & Snacks on the Coach.
Visit Key West, FL - Only $69
Cross the Overseas Highway.
See Old Key West - Only $69.
Ft. Lauderdale Airport Shuttles
Are You Going To Port of Miami?
We Offer a 10% Discount on Round Trip.
Miami Hotels - Amazing Rates! Low Rates! Call a Hotel Expert. 1-800-573-6351.
Miami Tour Company

Experience all the sights and sounds of The Magic City on a sightseeing tour from our sister site, Miami Tour Company. Rated #1 on TripAdvisor by Consumers. Daily excursions include:

  1. The Original Miami Tour - departs at 10am from South Beach
  2. Everglades Eco Adventure - with free shuttle from your hotel

See more tours & day trips »

Low Mortgage Payments Can Help Pay Off High Rate Credit Cards

Is it ever just time to find a way to get a low payment mortgage?
One of my previous clients emailed and told me he was in a tight spot and needed help meeting his monthly budget. What had occured was that his company had closed its doors, and someone convinced him that spending $35,000 at ITT Tech would solve his career problem.

Not the case. He found himself having new student loans, one credit card which has $13,000 balance and a first mortgage of $118,000 with a payment of $1,064.

His monthly mortgage payment was $1,034 and each month he was paying $346 on his credit card. 
The 1-Month Option Arm with a start rate of 2.75% appeared to be the best solution. What this product will provide my client is a mortgage payment that is dramatically reduced (almost by 50%) and can only increase by 7.5% each year. 

The downside is that if only the minimum payment is made, my client owes more on his house than he did the previous year.

The lender will provide him a variety of payment choices each month.  One will be the minimum, another will be interest only, and another will be fully amortized principle and interest. 

The benefit to an Option Arm mortgage is, that a person who’s cash flow is sporadically reduced, has the “option” to pay a low minimum payment

His total out going expenses are now only $564 and he now has paid off the $13,000 on the credit card. 

His minimum monthly payment can only increase annually by a miniscule 7.5%. The worst case scenario, in year two his mortgage payment is $810; and year 3 he will be at $893.
Three years will be enough time for him to put some new choices in place.  He can refinance then, sell his property or do whatever. 

This was a wholesale proposal which produced for this client exactly what he wanted: a low mortgage payment .

By Jim Jump To Comments
See related stories in Personal Finance, Florida Mortgage,
RSS feeds RSS | Bookmark Bookmark |  Submit to Digg Submit to Digg |  Add to Y! My Web Yahoo! |  Email this story Email this

1 Responses to "Low Mortgage Payments Can Help Pay Off High Rate Credit Cards"

    Condo says:

    Recently we have witnessed a boom in the mortgage industry. With increasing real estate values and a very low inflation, interest rates have touched an all time low. Since inflation is running extremely low at present, economists feel that mortgage rates will remain low in the near future also. As an obvious consequence homeowners are giving serious thoughts to the effects of low mortgage rate.Usually, mortgage lenders offer a variety of combinations of interest rates and points. For example, 6.0% and 2 points, 6.5% and 1 point or 7.0% and no points. Points are a one-time upfront payment that the borrower makes to the lender at the time of closing the mortgage. It is a fee like the interest and not a part of the down payment.


    Posted on 01/17 at 4:37 AM

Post a Comment

Commenting is not available in this weblog entry.