With interest rates at an all time low there are ALOT of people who are either thinking of REFINANCING, however, that's not always the best thing to do.
After 20 years in Real Estate it has been drilled in my head that you should only think aboutREFINANCING if you are going to drop your rate by 2% and stay in your home at least 5 years. Well, it seems this isn't always the case. Let me explain.
My Husband David and I purchased a new home about 1 1/2 years ago at 5.6% interest on a 15 year mortgage. I have been contemplatingREFINANCING since rates have dropped to 3.6% on a 15 year mortgage. We weren't looking at pulling out any equity, just saving the interest.
When I ran the amortization to check out the numbers we would be saving about $1,900 in interest over the 15 year term. That sounds really great doesn't it. Except we would have to spend about $2,500 in REFINANCINGfees to save that $1,900. Yep that would be a negative $600 it would costs us to REFINANCING to that 3.6%.
So I think I really LOVE our 5.6% loan and will stick with it, pay some extra down each month and have it paid of early and still save that interest. A MUCH BETTER SOLUTION thanREFINANCING in our case!
Make sure if you are thinking aboutREFINANCINGthat you check out the true costs before going through with it. Who is my GO-TO mortgage person?? Missy Coffman at Red River Bank. Missy is the head of the Mortgage Department at Red River Bank in Alexandria, LA; you can contact her directly at 318-561-5841. Make sure you let her know that Paige suggested you call.
It's always a good idea to find out your options before and not after when it's too late!
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