Which refinancing option is best for you?

    There aren't quite as many loan programs as there are
    borrowers, but it seems like it sometimes! We'll work with
    you to qualify you for the best loan program to fit your needs.
    But there are some general considerations you can have in
    mind in advance.

Are you refinancing primarily to lower your rate and monthly payments?Then your best option
might be a low fixed-rate loan. Maybe you have a fixed-rate mortgage now with a higher rate, or
maybe you have an ARM -- adjustable rate mortgage -- where the interest rate varies. Even if it's
low now, unlike your ARM, when you qualify for a fixed-rate mortgage you lock that low rate in for
the life of your loan. This is especially a good idea if you don't think you'll be moving within the next
ten years or so. On the other hand, if you do see yourself moving within the next ten years, an ARM
with a low initial rate might be the best way to lower your monthly payment.

If you want to get the highest possible loan for the least possible payment, or a loan with
flexible payments, then ask us about Pay Option ARM loans.  These loans allow you to choose
from four payment options each month when you receive your statement.  Choose from a 15
year amortizing payment, a 30 year amortizing payment, an interest only payment, or an even
smaller minimum payment.

Are you refinancing primarily to cash out some home equity?Maybe you want to pay for home
improvements, pay your child's college tuition bill, or even better - put the equity to work by
investing it in a safe, liquid investment to create more wealth for you and your family. Then you'll
want to qualify for a loan for more than the balance remaining on your current mortgage. If you've
had your current mortgage for a number of years and/or have a mortgage whose interest rate is
higher, you may be able to do this without increasing your monthly payment. We can even help
you find a good financial planner to assist you in putting your equity to work!

You want to cash out some equity to consolidate other debt?Good idea! If you have the equity
in your home to make it work, paying off other debt with higher interest rates than the interest rate
on your mortgage -- for example, credit cards, home equity loans, car loans, some student loans
-- means you can save possibly hundreds of dollars a month.  Becoming consumer-debt free is
an important step on the road to financial independence.

Do you want to build up home equity more quickly, and pay off your mortgage sooner?
Consider refinancing with a shorter-term loan, such as a 15-year mortgage. Your payments will
be higher than with a longer-term loan, but in exchange, you will pay substantially less interest
and will build up equity more quickly. If you have had your current 30-year mortgage for a number
of years and the loan balance is relatively low, you may be able to do this without increasing your
monthly payment -- you may even be able to save! For example, let's say years ago you took out a
$150,000 30-year mortgage at eight percent. Your payment is about $1,100, exclusive of taxes,
insurance and so on. If your balance today is down to $130,000, you might take out a 15-year
mortgage at six percent and have an almost identical monthly payment. This is a great option for
people whose main goal is not to save money on their monthly payment but rather want to build
up equity and pay off their home more quickly.

However, you may want to consider whether paying off that house is the best use of your
dollars!  Contrary to what conventional wisdom says, you may be able to create more wealth
and achieve financial independence by taking a larger mortgage.  Sounds counter-intuitive, we
know.  Ask us to show you how this works!  You may be surprised at what you learn!
Charter Lending 6908 Summerbridge Drive Tampa, FL 33634-2255
Phone: (813) 514-4993 Fax: (813) 864-0341 E-mail: Dave@CharterLendingOnline.com
Building wealth through the intelligent, strategic use of mortgage financing