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Tag: Refinance

Why Did We Change Our Name?

Earlier this year, we changed our name to American Mortgage Brokers from a name we’ve had for over a decade – Granite Mortgage Company.

The main reason for changing our name to American Mortgage Brokers, is because we are, in fact, a mortgage broker. A mortgage broker is significantly different than a bank or conventional lender and we felt that it was important for this to be reflected in our name.

So why is being a broker significant? Easy answer. As a mortgage broker, we match you with a loan and a lender that best fits your particular situation. We review your financial information and look over an wide variety of lenders to match you with one who will give you the best rate and terms. Simply put, as a broker we can offer you more choices to better fit your needs.

We always liked the “Granite” part of our name. We felt it projected a solid and substantial image. But we didn’t want our new name to be too similar, thus potentially confusing. We figured that since we’re in the business of helping people finance their “American” dreams, American was a good choice to round off our new moniker.

Along with the new name comes a new website,, and a new email address. Beyond that, we’re the same hard-working team that’ll help you find the right mortgage fit for you. We look forward to working with you.

Should I refinance to get out of debt?

The reality is, with today’s low interest rates, if you own a home you could be spending way more than you should be on your mortgage. So if you have other types of debt like credit cards or other loans that you are paying a higher interest rate on, you could use the savings to pay it off. In many cases you could even lower your mortgage payment AND pay off other high-interest debt.

Another lesser-known bonus that most people don’t think about, is that mortgage interest is tax-deductible. So you can cut down on your tax bill too!

Here’s an example: If you can save just 1% on an existing mortgage of $200 thousand, you could put over $100 per month towards your other debts without raising your mortgage payment a dime! Plus you’ll save another $40,000 or more over the term of the mortgage. That’s huge!

In many cases, if you want to get your debt under control, your home sweet home could be just what the doctor ordered. Naturally, every situation is different. Give us a call and let’s talk through options to see if this could work for you!

When is the right time to refinance?

There are three main things to consider when thinking about refinancing:

  1. The interest rate
  2. How much it costs to refinance
  3. How long you are plan to live in or own the property

If you’re thinking about refinancing, your current bank or lender might not be the best place to go for advice. Why? Because they make money from servicing your mortgage and if you refinance with someone else, they will lose that income. Talk to an independent broker to get competitive rates and to research scenarios that will work best for you.

Know your break-even point.

There are a variety of rate and closing cost options available to most borrowers. Typically when deciding if a refinance makes financial sense, you should look at two different types of break-even analysis.

How long you’ll have to live in or own the home you are refinancing to recoup the closing costs and maximize the interest savings. For example, if you are going to save $100 per month on your interest and the closing costs on the new loan are $3,000, you will need live in or own the house for the next 30 months or 2.5 years to recoup the costs that you paid to refinance. As long as you’re planning on living in the home for at least the next 30 months or 2.5 years, it should make sense to move forward with a refinance.

Get the best rates available and an appropriate closing cost.

Next analyze the interest rate and amount of closing costs you should pay. Your mortgage broker should be able to give you three different interest rate and closing cost scenarios for review. Usually, the lower the rate, the higher amount of closing costs you will pay. You might even have a no-closing cost option available at a slightly higher interest rate. How long you  plan to live in or own the property will determine which is your best fit.

A good mortgage broker will be able to recommend an option that is right. If your bank, credit union, or mortgage company can’t walk you through these options, look elsewhere.