You work hard to make your house payments – maybe it’s time your house did something for you?
If someone handed you a check for a couple hundred thousand dollars, of course you’d seek advice from a professional to be sure you invest it for the best return possible. You have the same opportunity with your mortgage. The saying really is true – a dollar saved is a dollar earned.
But is now the time to refinance? Let’s run the numbers and find out.
When to Refinance?
Save Cash
Act quickly when rates change – they can go back up just as fast. Or, maybe there’s a better program available now? There’s just one way to find out…
Plan for Future
A 15-yr mortgage can be a great tool to perhaps reduce your rate, drop Mortgage Insurance faster, and possibly save thousands over the years.
Life Changes
Should you refinance your home?1
Many people are taking advantage of current market rates but how do you know whether the time is right for you?
Now may be the time for you to refinance, here are some questions to ask yourself:
Can decrease your interest rate by about 3/4%
By lowering your interest rate, you may be able to save money monthly
Can drop or decrease mortgage insurance
Perhaps, depending on the amount of equity in your home, you may be able to convert your loan to a conventional loan and possibly drop mortgage insurance
Want to pay your loan off early
Typicially with short term loans, the rates are lower, and by lowering your rate and decreasing term length, you have the ability to pay the loan off quickly. This can increase your monthly payment, call me to discuss your options.
Increase Cash Flow
If there is equity2 in your home, you may be able to use that as an asset towards other debt by doing a “cash out3” refinance.
Want to Consolidate Loans
If there is equity2 in your home, you may be able to combine a 1st and 2nd loan.
Want to Convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM)
With a fixed rate mortgage, your principal and interest payment3 will remain the same for the life of the mortgage.
Where do you start? You can only make an informed decision if you know the facts. Grab a recent mortgage statement and give me a call for a free consulation. Together, we will review your options.
Once we review your current financial situation and it is decided to move forward with a refinance, I will walk you through the loan process every step of the way. This can be done online, by phone or in our office at your convenience.
1. Please note by refinancing an existing loan, the total finance charges may be higher over the life of the loan.
2. Equity is the current market value of your home minus the amount you owe on your mortgage. As you make timely monthly payments and the value of your home increases, so will your equity.
3. Monthly mortgage payments could still increase due to increases in property taxes, insurance, expenses, etc..
