If you are in Indiana and have any equity in your home it is the perfect time to refi.  Rates are still historically low, and soon there will be some changes from Fannie and Freddie that will make refi’in a tad harder.  I have a great example of why it is more than perfect time to refit.

I just closed a home refi with a husband and wife, they were fantastic and ecstatic.  They loved me as well.  I was able to take them from a 7.5% FHA rate to 5.5 conventional loan.  What makes me angry is that when they did the original home loan the rates were no where near 7.5 more along the line of 6.5%, but when you use a local bank you do not always get the best service or rates.  BUT, this is not about that, at this point.

I was able to save them over $400/month.  Yeah, you read that right, $400 a month, and here is the kicker he may be getting laid off here soon.  So, this could not have happened at a better time.  They received $40,000 back at closing and with just that they have over 2 years of reserves of house payments, but with their monthly outlay they have 11 months in reserves, but they know if he was laid off, they would scale way back on their monthly expenses.

The break down of loan so you can see his savings and why it was a prefect time to do this loan.

Loan Amount      @ $232,000   @7.5%  = 1622.81 (principal and interest)
Taxes                @ 120/month                 120
Insurance           @ 75/month                   75
Mtg Ins              @ 105/month                 105
TOTAL        =                                              $1922.18

My solution @ 5.5%

Loan Amount      @ $232,000 @ 5.5% = 1317.27
Taxes                @                              120
Insurance           @                              75
NO MI                @     A HUGE SAVINGS PER MONTH
TOTAL         =                                         $1512.27

A TOTAL MONTHLY SAVINGS: $409.91

I know most of your situations will be veru different, but how much would it help you to save $300, $200, $100 or even $50 a month right now.  Now, is the best time to do it if you are facing a lay-off or even a slow down at work.  There is not much that can be done once you are laid off it really throws on the brakes.  I really cannot express enough that now is the time to refi if you are facing an uncertain employment future if you are holding equity in your home it does no one any good if it is locked away.  I know that local banks are more than agressive in foreclosure proceedings you have any substantial equity in your home.

You can download my Mortgage Planning Questionnaire , it is an easy step by step Home Loan application that will help me and my team better understand your needs.  You simply print it out and email or fax it back to me.  It is 100% safe and secure.

Dave Woodson