If your interest rate 5% or more you should seriously consider refinancing your home now!
According to the Wall Street journal Low mortgage rates have some homeowners considering refinancing, even if it has been less than a year since they last refinanced or bought their home!
The interest Rates have been hovering near all-time lows, with the 30-year fixed-rate mortgage averaging below 4.25% for the past three weeks, according to Freddie Mac's weekly survey of conforming mortgage rates. But they could be ready to head up: Last week, the Mortgage Bankers Association said rate on 30-year fixed-rate mortgages look poised to rise in the year ahead.
In short, those homeowners who aren't thinking about refinancing probably should consider the possibility, if they have the necessary income, credit and home equity!
That is true even if you are a borrower who secured a 5% mortgage rate on a 30-year fixed-rate mortgage last year. Assuming a loan balance of $200,000, if you could refinance into a 4.25% mortgage today, the savings would be about $100 a month! Also It could take the homeowners about 3 years more or less to recoup the costs of the refinance! but those homeowners who bought in 2009 presumably would plan on staying in the home at least three or more years, then the refinance to pay off in the long run!,
Make sure the new loan you getting to be fixed interest rate amortized over 30 years or if you pay off you home faster, then I suggest to refinancing at fixed interest rate amortized over 15 years!
This is just FYI only!
Thanks.
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