Surprise! We weren't able to cash in on the lowest mortgage rates since WWII. We knew The Cherry Group's expertise is Coconut Grove real estate and not necessarily mortgage financing, but we were surprised with our naivety. I mean how appealing is a 4% mortgage for a 30 year note? Even with our fingers on the pulse of every aspect of our business, we lost touch that our own home had suffered, as every home in Miami-Dade County had, by losing value - essentially changing our LTV (loan to value ratio). Where we once had 20% equity in our home, we now had 10%, making our LTV 90/10. Lenders require a minimum of an 80/20 to process a new loan or a refi. So, after all the paperwork and headaches with our lender, we were told they couldn't refinance unless we brought a 'very handsome' check to the refi closing table, something we're not prepared to do. Interest rates are expected to spike considerably in about 4 years or so and a our goal is to refinance before then. What's the game Plan? Take every spare nickel and plop it in your principal to get that LTV to at least 80/20. Then, and just then, maybe there's a prayer to cash in on mortgage rates that we'll probably not see again in our lifetimes.
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