How much have we heard about housing over the past 3 plus years? Most of it not good news. The positive – if you have a mortgage with a rate of 5% or higher, you should explore refinancing. The 30-year fixed rate has gone as low as 4%, and lower, since October 2011. The rate you secure could depend on the equity you have in your home, credit score and other variables that you will have to review.
In these tough times, a lower rate can benefit you:
· Cut your monthly payment and provide much needed liquidity.
· Choose a shorter term and pay off your loan sooner.
Experts would say that you need to consider how long you plan to stay in your home to recoup the closing costs. A rule of thumb, divide the cost of refinancing by your monthly savings. Total Cost of Refinancing / (Current Payment – New Payment); experts say the calculation should be less than two years to make it worthwhile. Kiplinger provided a link to a savings calculator at http://mtgprofessor.com.
There is so much cash on the sidelines, take advantage of what the industry has to offer. These are tough times, get tough. Sua Sponte.
If you need a good lender (Colorado), drop us a note. Your feedback and insight is appreciated.
Bradford C. Bruner
In these tough times, a lower rate can benefit you:
· Cut your monthly payment and provide much needed liquidity.
· Choose a shorter term and pay off your loan sooner.
Experts would say that you need to consider how long you plan to stay in your home to recoup the closing costs. A rule of thumb, divide the cost of refinancing by your monthly savings. Total Cost of Refinancing / (Current Payment – New Payment); experts say the calculation should be less than two years to make it worthwhile. Kiplinger provided a link to a savings calculator at http://mtgprofessor.com.
There is so much cash on the sidelines, take advantage of what the industry has to offer. These are tough times, get tough. Sua Sponte.
If you need a good lender (Colorado), drop us a note. Your feedback and insight is appreciated.
Bradford C. Bruner
