Just Approved: Duplex owner consolidates two loans for lower rate, monthly payment

Mortgage broker:

Liz Bayer, ProMortgage.

Property type: Duplex in San Rafael.

Appraised value: $1.34 million.

Loan amount: $905,000.

Loan type: 30-year fixed.

Rated: 4.5%.

APR: 4.517%.

Backstory: Last year, my client purchased a duplex. She occupied one unit and planned to rent out the second, adjoining residence. She obtained a first mortgage and Home Equity Line to purchase the duplex. At that time, we went with a 10-year adjustable-rate mortgage at a rate of 4.875%.

She recently approached me, wanting to get out of the adjustable-rate mortgage and move into a 30-year fixed. I suggested that we consider consolidating the two mortgages into one, since lenders do not consider this to be a “cash-out” refinance when the second mortgage was obtained as part of the original purchase. This benefits the borrower with a more favorable rate.

Additionally, my client had made some updates to the property and the appraised value came in almost $300,000 higher from what she originally paid. The end result was that we lowered her payment by $380 a month. This thrilled my client.

Liz Bayer,

ProMortgage, 415-383-3111, lizforloans@gmail.com.