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Do You Know What Your Interest Rate Is?

This seems like an easy question that everyone should know the answer to but recently I was shocked to find out that a majority of people out there really don’t know. After posing this question to a group of 6 different people I found out that only 2 of the 6 knew their interest rate off the top of their head.  The other 4 really didn’t know and to be quite frank really didn’t care.  The reason most people don’t know their current interest rate is because they are content with their current mortgage payment.  Think about it, if you are paying a 6% interest rate and have been for the last 5 years and are comfortable with the payment then why would you need to remember what your rate is? Why would you want to change it?“If it aint broke then don’t fix it”, right? The problem with that mentality is that people are missing out on some big monthly savings.  I think its wise to review your monthly expenses on a yearly basis. If you can save on your cable bill, phone bill, etc. then why not inquire with your provider and take advantage of that.  There is probably no bigger debt or expense for a person than their mortgage or house payment.  If you could lower this payment it could possibly produce hundreds of dollars a month in savings.  Even if you didn’t lower your monthly payment but instead refinanced from a 30 yr to a 15 yr you could save close to a $100k in interest over the life of the loan and get rid of your biggest debt a whole lot quicker.  I recently spoke to a gentleman who had a good job and very little debt but he had a 6.25% interest rate on his mortgage.  He was very content with his payment but when I showed him he could refinance to a rate just below 4% and save close to $400 a month he couldn’t believe it.  We calculated that the monthly savings of $400 was just about what he was paying for his car so he viewed this as if his car was now being paid for free! With so many different programs now available to homeowners it really doesn’t make sense not to at least try and refinance.  Even if you are upside down you can refinance under the HARP 2.0 program or an FHA streamline if you have an FHA insured loan.  I know you may be content with your current monthly payment but now is truly the time to review your finances and try to save some money on your mortgage payment! There are no upfront fees so it doesn’t cost you anything to at least inquire. If you are paying higher than a 5.25% interest rate then this message certainly applies to you the most.  To learn more about our company and mortgage products, please feel free to call Dan Longman, President of Priority Lending Corp, at 954-438-3776 ext.11 or email me at prioritydan@bellsouth.net. Please visit www.prioritylendingcorp.com

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