Should you refinance now?

By
Services for Real Estate Pros

From my experience, most people refinance their current mortgage to save money or to get out of adjustable-rate mortgages into a fixed rate. Refinancing is like making an investment. You need to balance the cost of refinancing with the amount of interest you save over time. The savings are really your return on investment from refinancing. 

With zero point and no-cost refinance programs, the cost of refinancing can be eliminated as a consideration. However, the trade-off with most of these creative finance programs is paying a somewhat higher interest rate.

When your primary motive is to save money by refinancing or to get out of adjustable-rate mortgage, you need to answer 6 questions:

                                 1. By how much will my payment jump after the rate adjustment?

                                 2. How often will my rate adjust and by how much?

                                 3. Is it important to have stability in my payment and rate?

                                 4. How much money will I save in a long term?

                                 5. How much will it cost me to refinance?

                                 6. Are the savings large enough to justify the cost?

If you have and adjustable-rate mortgage it is important to compare whether to stay with an adjustable rate or to refinance into a fixed rate. You may be able to save money, have the benefit of fixed monthly payment even after paying for closing cost and/or prepayment penalty. I'd be happy to calculate the payment necessary to pay off your loan in any number of years you desire.

There are many loan programs to consider, as well as fees for acquiring them.

Click here for your FREE refinance analyses or call me at

My purpose is for you to be so outrageously happy with the help I provide you that you'll gladly introduce me to at least two people you really care about before I even help you buy a close on your loan. 

I help clients who are looking to purchase  new or refinance their existing home in Palm Coast, Ormond Beach, Daytona Beach, Orlando, Miami, St. Augustine or anywhere in Florida. I also can help customers from New Jersey, Tennessee, California, Georgia, Arkansas, Colorado, Illinois, Indiana, Iowa , Kansas, Michigan, Missouri, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin.

I proudly serve Palm Coast, Flagler County Florida Waterfront and Golf Communities, Hammock Beach, Hammock Dunes, Ocean Hammock, Cinnamon Beach, The Conservatory at Hammock Beach, The Gardens at Hammock Beach, Yacht Harbor Village, Grand Haven, Palm Coast Plantation, The Sanctuary, The Tidelands, Canopy Walk, Oceanside Luxury Condos, European Village, Palm Coast Resort, The Surf Club, and More!

Comments (3)

Brett Noel
Keller Williams - Paso Robles, CA

Great article, thank you for sharing, Yes lets refinance now

May 22, 2008 06:43 PM
Anonymous
Tod

Is there ever a situation when a prepayment penalty could actually benefit a borrower? I read article on prepayment penalties and it stated that there are times when this is beneficial. Can you tell me an example?

May 23, 2008 11:18 AM
#2
Dmitry P
Palm Coast, FL
Thank you for living the coment on my blog. Yes there are times when prepayment penalty is beneficial to the borrower. Some people might elect to have prepayment penalty in order to avoid temptation to sabotage themselves into refinancing every time they need the money. The goal to built wealth is not to refinance house up to “wazu” but to try to pay the house off. Prepayment penalty might be a pretty good way for people not to refinance. This is just another method to discipline people almost like a payroll deduction to contribute to 401K. Dmitry
May 23, 2008 03:01 PM