Were you one of the many teachers who took advantage of the wonderful CalSTRS 80/17 Home Loan Program that was available a number of years ago?
If so… and you haven’t already refinanced out of the loan, it’s time to seriously take a look at your loan, and look into refinancing now.
If you haven’t refinanced, you are most likely paying a much higher interest rate on your loan than you could be if you refinanced.
If you recall, the CalSTRS 80/17 home loan program was unique to teachers and employees within the CalSTRS system. At the time you purchased your home, you only had to put down 3% for your down payment. 80% of your purchase price was your first mortgage, and the other 17% was a sort of “silent second” that you didn’t have to pay on for the first 5 years of your loan. After 5 years, the principle and interest payment on this 17% begins and be amortized over 25 years.
This program was a fantastic way for teachers to buy a home, and during the first 5 years everything was great.
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The problem is that after 5 years, everyone in this program is realizing that their mortgage payment is increasing by around $400 – $600 a month.
If you still have this loan, call me today!
In just the past couple of months I have helped 2 clients refinance out of this loan. Both are now saving over $400/month! It is highly likely that I can help you do the same!