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
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