Mortgage News and Notes

Lower your monthly payment OR pay your mortgage off sooner - lower rates give you the choice!

June 26th, 2019 8:25 AM by Steven Hofberg

Recently, we have told you about the dramatic drop in mortgage rates over the past few months. These rates are near their historic lows. Some people predicted that they would rise to 5 percent and above in 2019 - they turned out to be wrong. Rates are below 4 percent for 30-year fixed rate loans, and in the low 3 percents for 15-year fixed rate loans. However, remember that mortgage rates can be volatile. Any unexpected change in the markets, domestic or global, could push them back up.

 

Today I want to talk about some of the options you have when refinancing to lower your rate. The first option, of course, is to lower your payment and save money each month. But there are other options, including the opportunity to refinance to a lower rate while continuing to make the same monthly payment. This substantially increases the amount of principal paid each month.

 

One of our clients came to us with this particular goal and, after we ran the numbers, it turned out that a refinance of her mortgage would enable her to pay it off almost 6 years earlier than its stated term. As a result, a savings in total interest of $150,000 was produced. That is a lot of savings!

 

Contact us today to see how you can benefit from our expertise and this homeowner-friendly market.

 

Steven H Hofberg, Operations Manager

Posted in:Refinance and tagged: RatesLowRefinance
Posted by Steven Hofberg on June 26th, 2019 8:25 AM

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