August 10, 2016
Right now mortgage rates have hit record lows. Brexit has taken a role in putting pressure on the market. What is happening in Europe can allow consumers here in America to save money. Dropping your interest rate .5% or more can possibly save you hundreds on your monthly payment and thousands of dollars in interest over the life of the loan. It is time to possibly consider taking advantage of conventional rates on 15 year loans under 3% and 30 year loan under 4%. If you have one of these following situations you may want to consider a refinance on your home mortgage:
1. Credit Card Debt – If you have credit card debt at 17% interest you may want to refinance and put that debt into your home mortgage. The interest may be deductible, plus the rate will be much lower. You cannot get ahead of your debt if you are paying 17%.
2. Plan to stay in your house for more than 3 more years . The longer you stay in your home the more it makes sense to lower your rate.
3. Have a 2nd mortgage at a high rate or fluctuating rate such as a HELOC. A HELOC is a home equity line of credit. This is where the interest rate fluctuates but you can have the flexibility with how much of the line you are using. Whereas a home equity loan is when it is a fixed amount of money at a fixed rate. If you have a high interest rate on your home loan you may want to refinance.
4. Mortgage with a rate of 5% or more. Anytime you can drop 1-2% off your rate you can potentially be saving thousands of dollars over the life of the loan.
If you are interested in a refinance, please contact our office and we can give you the names of some Mortgage Brokers to work with.