Are you considering refinancing your home?
Are you considering refinancing your home? Curtis Van Carter brings us great information on what to consider and check into before you take the refinance step. Please leave your comments on Curtis's page. He will appreciate hearing from you.
If I can assist you with the purchase or sale of an Albuquerque or Rio Rancho NM home please contact me. I am ready to exceed your real estate expectations!
When to refinance again
Those who refinanced their mortgages a year or so ago, when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may be wondering whether it’s time to refinance yet again now that rates are at least a full percentage point lower.Making sense of the story
- As of Thursday, according to Freddie Mac’s weekly survey, the average rate on a 30-year loan was 3.83 percent, down from 4.63 percent a year ago, setting a record low.
- According to financial planners, homeowners considering refinancing first should delve into their financial goals, specifically the length of time they plan to live in the home.
- Some homeowners decide it makes more sense to stay with their current mortgage, especially if the savings are small or they plan to move within a year or two. According to one financial planner, when homeowners refinance, they’re not building equity; they’re starting at the beginning of the amortization tables.
- Amortization schedules work like this: In the first few years, almost all of the payment goes toward interest, so the longer the homeowner has the loan, the more is put toward the principal.
- Those who refinanced in the last year or two don’t have to consider amortization tables, but they do need to know their equity position – and when refinancing would begin to pay off.
- To calculate that, start with a rundown of all the closing costs, then divide the closing costs by the amount expected to be saved on each monthly payment.
- Depending on the lender, most homeowners likely need to have at least 20 percent equity, and maybe a little more, if they want to wrap closing costs into the new mortgage.
Thank you for reading this post. If I can ever be of help in finding you the perfect property here in the Napa Valley, please email me at Curtis@NapaValleyAddress.com
Your Broker Extraordinaire, selling Napa Valley Real Estate from its heart, Yountville
My website & blog: www.NapaValleyAddress.com
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