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1:00

Jason Lilly, CFA, CFP -

Hello and welcome to today’s financial chat. I'm looking forward to taking your questions this afternoon. I am a Chartered Financial Analyst and a Certified Financial Planner practitioner. I have been in the investment management and financial planning field for more than ten years, working with individuals, families, endowments, non profits and municipalities. We can discuss any topics, or questions you may have regarding personal finance. For more information visit www.rocklandtrust.com I can be reached at jason.lilly@rocklandtrust.com

Disclaimer:

Comments made during this program are not intended as specific investment advice. Please consult with your investment professional before making any investment decisions. Opinions expressed in today’s program are the sole opinions of Jason Lilly and not Rockland Trust.

In an effort to answer as many questions as possible spelling, grammar and sentence structure may suffer. My apologies in advance…

1:00	[Comment From Chris] Does this make good sense to do? Home Value = $400K. We have $261K left and 24 years at 5 3/8. I can go down to 4.87% and 20 years. I'd add a little on the monthly bill. But end payout is between $30-$40K. No brainer, right? PS - planning on staying for the long haul.

1:04	Jason Lilly, CFA, CFP - Hi Chris, your right no brianer, as long as the additional monthly payment does not cause cash flow issues. Also, a higher monthly housing cost, may limit borrowing capacity in the future - if that is a consideration.

1:05	[Comment From LIZ`] I HAVE A FIRST MORAGE AT 4.85% 91000 8 YEARS LEFT.AND A SECOND AT 7.50% 66000. 10 YEARS LEFT WHAT WOULD BE THE SAVING BE $ WISE IF I RE FI TO A 15 YEAR NO TAX OR INSURANCE INCLUED ..

1:09

Jason Lilly, CFA, CFP - Hi Liz, your actual payment and intial term would help, but based on the numbers you provided you would pay approximately $20,000 more in interest payments, based on a new 15 year at 5%. This is because your extending your payment term out. However, you could save approximately $650/mth in payments - If you reinvested the difference, using a 8% return, over the 15 year period you would have a retirement nest egg of about $225,000.

1:11	[Comment From marco] How do I refinance if my house is currently valued less than the outstanding mortgage amount?

1:15

Jason Lilly, CFA, CFP - Marco, you have options. If your current mortgage is owned by Fannie Mae or Freddie Mac, you could qualify under the MHA (Making Home Affordable) for up to 105% of your value, but there are some criteria you need to meet. I have attatched a link for more information. Another option is to, put down more cash.
http://makinghomeaffordable.gov/

1:15	[Comment From Tony (watertown)] Hi Jason, thanks for offering your help! My wife and I purchased a condo a few years ago, we have a 30-year fixed mortgage at 6.675%. We plan to buy a home within the next 5 years, would it be advantageous for us to refinance our mortgage now at the lower rate?

1:18	Jason Lilly, CFA, CFP - Tony, If you refinanced to a 5% rate you would save approx. $107 per month per $100,000. So, if the outstanding balance is $300k and closing costs totaled $3,000, it would take you approx. 10 months to breakeven. After that you are saving money.

1:19	[Comment From jeff] can you explain 12b-1 fees on Mutual funds. Are these fees included in the expense ratio?

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