Solution:  By applying the "Smart Money Mortgage" Ashford came up with a plan whereby Neil refinanced into a 6 month adjustable interest only loan with a teaser rate of only 3.375%. The loan was based on the London LIBOR and was fully indexed after 6 months and would adjust up to 3.875%. From then on no adjustments would occur unless the LIBOR base had moved up or down. Ashford also structured the loan to have absolutely no closing costs and the only "out of pocket" cost to Neil was his appraisal.

Conclusion: In the first calendar year, Neil saves over 20,000.00 in interest payments. Beyond that – who knows but Neil sure is pleased and feels that the 20k in savings puts him one step ahead of his listing commission on the property – especially since it only cost him $500.00 to restructure his mortgage.