With mortgage rates at truly historical low levels, the question is what does that do for you in your present situation.
You can truly benefit from these low rates, whether you are considering to refinance or looking to purchase a new home.
Home mortgage refinance for current home owners in Chattanooga, Tennessee and Georgia
1. Lower your monthly payment - Reducing your interest rate most often means to home owners that they can reduce their monthly payment. Lower payments are always better, but what can you do with that additional money.
How much money can you save?
As an example, a 30 year loan for $150,000 at 6%/6.250% APR would have a principal and interest (P/I) payment of $899.33. If that loan is 2 years old, your approximate payoff balance might be $146,800.
A new 30 year loan at 4.375%/4.520% APR with a loan amount of $151,000, adding back some for closing costs, would have a P/I payment of $785.76.
A monthly savings of $113.57. Would that help your budget? Maybe, but it would also add 2 years back to your home loan.
What if you kept paying the $899.33, but with the lower interest rate?
You now pay your home off in 22 years. Reducing your time with a house payment by 6 years.
Your goals may be better met with the monthly savings to boost your budget. Your goals may be better met to be house payment free 6 years quicker.
The key is with these rates - You have the unbelieveable opportunity NOW, to decide and to act.
2. Reduce you term
The above example showed how you might be able to boost your budget or find quicker freedom from a house payment.
For many homeowners, the goal of house payment freedom is top priority. With these rates you may be able to afford a house payment that will drop your loan terms to 15 years or fewer.
The same scenario, refinancing your balance with closing costs with a new loan of $151,000. Rates for 15 year mortgages have been as low as 3.75%/4.100% APR. For our example let's use 3.875%/4.200% APR.
You could become house payment free in 15 years with a P/I payment of $1107.50 - just over $200 more per month and House Payment Free 13 years sooner.
WOW! And this is actually real. All rates quoted here are fixed rates with full amortization.
Call to go over your options to achieve your financial goals.
|
Richard Smith
NMLS 184479
Cell: 423-280-0345
Toll Free: 888-474-9920
Office: 423-899-6898
|
American Acceptance Mortgage, Inc
NMLS 132505, TN/GA Licensee
Email: rsmith@aamonline.com
|
FHA, VA, Rural Development, Conventional, Jumbo,
Reverse Mortgages, FHA 203k Renovation
Home financing in Tennessee and Georgia.
www.RichardSmithHomeLoans.com
|
|
Thank you for visiting. This is the professional blog for
|
|
Richard Smith
NMLS# 184479 TN# 40161 GA# 28928
Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC).
Lending in Chattanooga, Tennessee and Georgia for over 20 years.
|
|
Stearns Lending, Inc
|
|
Cell phone: 423-280-0345 Email: Richard@HomeLoansChattanooga.com
|
|
Visit my website: www.RichardSmithHomeLoans.com To inquiry about a home loan Begin Here
|
|
Read my most recent articles in Scotsman Guide.
|
|
This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Stearns Lending, Inc.
|
;)
;)
;)
Hi Richard, A great post. People need to be reminded to do this. Not just to take advantage of the lower rate but perhaps keep the payment the same and pay off the loan faster. This is a good reminder for all of us to remind our past clients to take advantage of this NOW while we all can.