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
One of the many reasons why I love my clients is that I frequently
get ideas on helping other homeowners from them! I recently spoke to a few clients
who have great rates on their adjustable rate mortgages (ARMs) right now, but
only have one or two years remaining in the initial fixed term before the
adjustable rate kicks in. They are concerned about what may happen to their
rate and monthly payment in the future.
Another client that I spoke with has a seven-year ARM at 3.5% rate
with two years remaining before it adjusts to market. No one can predict where
rates will be two years from now, but we do know that today’s rates are at
historic lows. So even though refinancing to a fixed-rate mortgage would give
her a slightly higher rate, the peace of mind from a fixed-rate mortgage at a
really good rate made the decision to refinance an easy one for her.
If you are in a similar situation, please consider this: since
your initial rate on an ARM tends to be below market, and because LIBOR has
gone up, the first adjusted rate is almost certainly going to be higher. That
increase can be as much as the maximum 5% adjustment, meaning a 3.5% rate can
become a 5.5%, 6.5%, or an even higher rate instantly.
The question is, should
someone with a soon-to-adjust ARM refinance while fixed rates remain low? The
answer, of course, is that it depends on your particular situation. However, it
would be worth your time to let me run the numbers for you. Email me at Margie@rmcenter.com or go to the Contact
As mortgage rates continued their decline over the first half of
this year, I had the opportunity to speak with many clients and potential
clients about their current mortgage debt. In discussing options with them, I
found that some had a Home Equity Line of Credit (HELOC) in addition to their
first mortgage, some of which had substantial balances. The rate on most
HELOCs is tied to the Prime Rate, typically the one posted by the Wall
Street Journal. In 2008, it reached a low of 3.25% where it stayed until 2016.
However, has been steadily increasing since then and is currently at 5.50%.
Homeowners who took out a HELOC during the period from 2008 to
2016 saw no change in their interest rate for that entire period. For some, it
felt like a fixed rate loan with a rate in the middle 3s. But over the last
three years, the rate has increased by 2.25%. Payments have increased and now
there is uncertainty over future increases.
Here is what I did for two clients last week. They refinanced
their first mortgage and the HELOC into a single fixed rate mortgage. The
Savings of a few hundred
dollars a month.
Principal and interest
paid on the entire debt instead of interest only on the HELOC.
Uncertainty of future
rate fluctuations removed.
If refinancing your HELOC is something that interests you,
please contact me to discuss your particular financial situation.
Margie Hofberg, President