Home Mortgage Refinancing – Save Thousands Now
“In this world nothing is certain but death and taxes.” - Benjamin Franklin
While death and taxes may be a certaintly, another certainty is that home mortgage rates will fluctuate and with the recent Federal Reserve announcement, we are going to be seeing a change in interest rates…and they are going up. While it may not be much, home mortgage rates are going to be going up too. With a home being the largest investment that most people will ever make, even a slight decrease in the home mortgage interest rate that you are currently paying can save you hundreds a month and tens of thousands of dollars over the life of the loan. For many people, now might be the best time to do a home mortgage refiance and save thousands of dollars. Are you one of these people?
In the past decade the mortgage industry has become a highly competitive field. With recent events in both the mortgage industry and the U.S. economy, rates are changing rapidly. For many of us, we may be paying for more than we should on our mortgage and not even realize it. In fact, many people never think about their mortgage over their years – a mistake that can cost them serious money. They just sign the papers and pay the monthly payment. However, during the 15-40 mortgage term, interest rates will rise and fall – and the smart consumer knows to take advantage of these fluctuations.
Maybe you are thinking that it is too much hassle to refinance and not worth the time. Just think about this: If you took out your 30-year mortgage 5 years ago at 5.65% on a $250,000 mortgage, that same mortgage may now be available to you for 5.00%. Although it may seem like only a small amount, 0.65% to be exact, that 0.65% adds up to over $36,000 you can put back into your pocket over the life of the loan. Ask yourself this; is 4-8 hours of your time worth $36,000? For most of us the answer is a resounding yes! Of course because of the variables in fees, the above calculation is without any deduction of fees. However, if you are going to look into refinancing your home, your loan officer can provide you with a comparison and amortization table that will show you just how much you will save icluding the fees associated with your home mortgage refinancing.
Another reason you may want to refinance is to get your mortgage handled by a different company than you are with now. Sometimes, for various reasons, our current mortgage lender doesn’t meet our needs or provides sub-par customer service. You might want to move your business to a local lender, or one that offers more options for repayment.
Some people find themselves refinancing to get rid of adjustable rate mortgages and other balloon payments. Thanks to the competitive market out there for mortgage notes, the average homeowner with decent credit will have no problem finding a broker or bank that will refinance them at terms they can both agree on.
So as you sit down to pay your monthly mortgage bill as yourself these questions:
- Am I getting the best interest rate available for someone with my credit?
- Am I happy with the level of service my current mortgage holder provides?
- Do I have a mortgage payment that will go up in later years that I can refinance now to lock in a lower payment?
Each of these questions is good reasons to evaluate your current mortgage and consider mortgage refinancing. In the end, you may not only save a lot of money on your total house payments, but you may also end up getting better service with lower payments – something we can all enjoy!