Case Study #9 – Shorter Term Refinance

The Moreira Team has done an extraordinary job with the refinance of my home. I especially want to thank Amanda Bailey for her help! This thoroughly professional team made my refinance the easiest, fastest process I have ever been through. I would recommend the Moreira Team for all your mortgage needs! 

Jean H.Jean H.

The Client

Our client came to us wanting to refinance her home with a lower term.

  • Loan Type –Refinance 
  • Program – Conventional 15 YR 
  • Loan Amount – $284,000 
  • Starting Rate – 4.75% 
  • Starting Payment – $1,842 
  • New Rate – 2.75% 
  • New Payment – $2,288 
  • Interest Savings per month – $149,025   

Client Requirement

The client’s main goal was to refinance to a shorter term to take advantage of a lower rate and save on interest over the life of the loan. She wanted no out of pocket expense and preferred not to have an appraisal. In addition to not coming out of pocket she wanted to keep her closing costs to minimum. This would preserve as much of her equity as possible for a future sale when it came time to downsize.   

Loan Challenges

The main challenge on this deal was to make sure we could find the lowest rate out in the market to make the deal very attractive. We also need to make sure we could get an appraisal waiver on this refinance. This would make the process go quicker, and the client could avoid the extra expense.

The Challenges

  • Finding a program that best suited a 10% down payment.
  • Shop as many lenders as possible to get the lowest rate to ensure the payment was affordable and would meet the client’s budget.  
  • Getting the preapproval done quickly so an offer could be made as soon as possible.  

Our Solution

After careful research we secured the borrower a great 15yr rate and were able to structure the loan in a way to get an appraisal waiver. By doing it this way, her closing costs were affordable so she could maximize her saving over the life of her loan and preserve her equity for a future sale. 

The Results

We were able to lower our client’s rate, with little out of pocket expense and save her almost $150,000 on the life of her loan! And we were able to do it all in less than 3 weeks!

  • Client was able to lower her rate down to a 2.75% from a 4.75% 
  • The shorter term secured allowed her to save $149,025 in interest savings, compared to her original loan. 
  • She was able to refinance with no appraisal, no out of pocket expense, and reasonable closing costs 
  • We closed in 17 days from our initial phone call.