Mortgage News and Notes

We are not exaggerating one bit! Margie has been in the mortgage business for over 35 years, and she has never seen rates as low as they are today. Various economic factors have pushed the yield on the 10-year Treasury bill to about 1.00%, the lowest in many years. Since mortgage rates track the movement of the 10-year bill fairly closely, the result is nothing less than an unprecedented opportunity for homeowners to refinance their mortgage and potentially save hundreds of dollars each month.

Or, consider the option of refinancing to a 15-year mortgage, and reduce the total amount of interest paid and the number of years left on your mortgage without substantially increasing your monthly payment.

Whatever your situation, now is the time to contact Margie and have her review the numbers with you. She will be happy to show you how you can benefit from some of the lowest rates in memory.

Steven H Hofberg, Operations Manager


Posted by Steven Hofberg on March 14th, 2020 5:35 PM

Refinancing the balance of your 30-year mortgage to a 15-year offers tremendous benefits, including:

  • More of your payment goes to principal each month, building equity much faster.
  • The total interest you pay over the life of the loan is drastically reduced.
  • Rates for 15-year mortgages have dropped substantially recently, and are near historical lows.

Let’s look at how a 15-year refinance would benefit a typical homeowner.

Our borrower obtained a 30-year mortgage for $400,000 at a fixed rate of 4.50% two years ago, with a monthly payment (principal and interest) of $2027. After 24 months the remaining principal balance is $387,000. Continuing to pay the 30-year loan to maturity will cost $330,000 in total interest. But instead, they choose to refinance into a 15-year mortgage at 3.00%. The total interest to maturity is now only $98,000. Compared to sticking with the 30-year loan, our borrower will save more than $280,000!

Of course, switching to a 15-year mortgage will result in a higher monthly payment, but that increase goes towards principal, which builds equity much faster.

Remember, rates are subject to change, so contact Margie soon if you would like to hear more of the details. She would be happy to show you just how much you can save.

Have a great week!

Steven H Hofberg, Operations Manager


Posted in:Refinance and tagged: EquityRefinance15-year
Posted by Steven Hofberg on January 29th, 2020 1:29 PM

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