"Free-in-10-Mortgage" Deals – Worth Considering?

February 13, 2012 No Comments »

We’ve seen a few “Free in 10 Mortgage” promotions being offered by a number of credit unions lately and depending on your individual financial circumstance these products may be worth the consideration. The top offer we’ve come across is from a regionally based credit union out of Minnesota called US Federal Credit Union. And although their name might lead one to think their customer base stretches across the country, they actually just serve a small community in Minnesota encompassing Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties.

What is a Free in 10 Mortgage?

A “free in 10 mortgage” allows a consumer to pay off the entirety of his/her property or house within 10 years by restructuring an existing mortgage to incorporate today’s record low mortgage rates and the remainder of the bill on their home. It’s ideal for people who have already payed off a significant portion of their mortgage and are not under water. It may also help if you’ve recently received an increase in pay or salary as your total monthly mortgage expenses will likely increase for a 10 year period in order to fully tackle the rest of the amount owed on your home.

Today’s best offer (from US Federal Credit Union) is currently offering a Free in 10 Mortgage that works like this:

1) Refinance your existing mortgage into their “Free in 10″ plan.

2) Get a new APR starting at 3.694% depending on your credit standing and amount owed on your property.

3) Pay $999 in closing costs to finalize deal.

In the example provided by US Federal Credit Union anyone paying roughly $500/month on a 30 year fixed rate mortgage with an APR of roughly 4.3% stands to save up to $58k in interest payments over the life of the mortgage by switching to their “Free in 10″ at 3.694% APR.

Info Graphic Explaining Savings:

You’ll have to make sure you qualify for their lowest mortgage rate offer in order to save as much in interest expenses as they claim here (left).

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