Mortgage News and Notes

We are not exaggerating one bit! Margie has been in the mortgage business for over 35 years, and she has never seen rates as low as they are today. Various economic factors have pushed the yield on the 10-year Treasury bill to about 1.00%, the lowest in many years. Since mortgage rates track the movement of the 10-year bill fairly closely, the result is nothing less than an unprecedented opportunity for homeowners to refinance their mortgage and potentially save hundreds of dollars each month.

Or, consider the option of refinancing to a 15-year mortgage, and reduce the total amount of interest paid and the number of years left on your mortgage without substantially increasing your monthly payment.

Whatever your situation, now is the time to contact Margie and have her review the numbers with you. She will be happy to show you how you can benefit from some of the lowest rates in memory.

Steven H Hofberg, Operations Manager

Posted by Steven Hofberg on March 14th, 2020 5:35 PM

One of the many reasons why I love my clients is that I frequently get ideas on helping other homeowners from them! I recently spoke to a few clients who have great rates on their adjustable rate mortgages (ARMs) right now, but only have one or two years remaining in the initial fixed term before the adjustable rate kicks in. They are concerned about what may happen to their rate and monthly payment in the future.


Another client that I spoke with has a seven-year ARM at 3.5% rate with two years remaining before it adjusts to market. No one can predict where rates will be two years from now, but we do know that today’s rates are at historic lows. So even though refinancing to a fixed-rate mortgage would give her a slightly higher rate, the peace of mind from a fixed-rate mortgage at a really good rate made the decision to refinance an easy one for her.


If you are in a similar situation, please consider this: since your initial rate on an ARM tends to be below market, and because LIBOR has gone up, the first adjusted rate is almost certainly going to be higher. That increase can be as much as the maximum 5% adjustment, meaning a 3.5% rate can become a 5.5%, 6.5%, or an even higher rate instantly. 


The question is, should someone with a soon-to-adjust ARM refinance while fixed rates remain low? The answer, of course, is that it depends on your particular situation. However, it would be worth your time to let me run the numbers for you. Email me at or go to the Contact Us page.


Margie Hofberg, President


Posted by Steven Hofberg on August 1st, 2019 12:15 PM

As mortgage rates continued their decline over the first half of this year, I had the opportunity to speak with many clients and potential clients about their current mortgage debt. In discussing options with them, I found that some had a Home Equity Line of Credit (HELOC) in addition to their first mortgage, some of which had substantial balances. The rate on most HELOCs is tied to the Prime Rate, typically the one posted by the Wall Street Journal. In 2008, it reached a low of 3.25% where it stayed until 2016. However, has been steadily increasing since then and is currently at 5.50%.

Homeowners who took out a HELOC during the period from 2008 to 2016 saw no change in their interest rate for that entire period. For some, it felt like a fixed rate loan with a rate in the middle 3s. But over the last three years, the rate has increased by 2.25%. Payments have increased and now there is uncertainty over future increases.

Here is what I did for two clients last week. They refinanced their first mortgage and the HELOC into a single fixed rate mortgage. The resulting benefits:

  • Savings of a few hundred dollars a month.

  • Principal and interest paid on the entire debt instead of interest only on the HELOC.

  • Uncertainty of future rate fluctuations removed.


    If refinancing your HELOC is something that interests you, please contact me to discuss your particular financial situation.


    Margie Hofberg, President

Posted by Steven Hofberg on July 11th, 2019 1:19 PM


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