How a Refinance Can Drive Down Your Monthly Expenses

Reblogger Lottie Kendall
Real Estate Agent with Compass CA DRE# 01215160

More great advice and food for thought from Rob Spinosa. How many of our clients and friends, or perhaps ourselves, can benefit from a refi?

Original content by Rob Spinosa NMLS: 22343

How a Refinance Can Drive Down Your Monthly Expenses

 

While all real estate may be local, so too is it true that one homeowner, confronted with the opportunity to save $250 per month through refinancing, for example, may view that as a significant financial relief while another may feel it's not even worth it to get off the couch to consider going through the hassle of the loan process.  As we work into the second half of 2019, there is no mistake that the low rate environment we are enjoying again is providing opportunities for homeowners to refinance.  Often in these cases, having an open mind about any level of savings can help us determine whether or not a refi is "worth it."  Here in the San Francisco Bay Area, if we take an average loan size and make some assumptions on monthly savings through a refinance at today's rates, we see that it's not unreasonable to think that our clients can save between $150 and $350 per month.  When you look at this in relation to the most significant household budget expenses; auto loans, student loans and credit car payments, it's easy to see why a careful review is a great idea.  Need more proof?

 

As of 2018, it is estimated that 44% of American adults have a car payment.  On average these individuals owe over $30K on their auto loan and they pay over $500 per month on their payment.  Interest rates vary but with an average FICO score of 695, you can bet your bottom dollar that some of these merry motorists are not enjoying 1% interest rates on their auto debt.  It's possible today's refinance could cut your auto payment in half --- or at least that's the way it would feel until the car is paid off.

 

The average student graduates (or not...) college with about $25,000 in student loan debt.  It's estimated that the payment on this would hover around $280 per month.  Owning a home is a big financial responsibility.  Owning it alongside student loan debt can turn it into a financial burden that refinancing might ease.

 

Depending on what stats you review, it's estimated that the average American carries between $4000 and $7000 per month in credit card balances that roll from month to month.  And you can be sure that as this revolving debt ages, the interest rate on it does not suddenly get better.  To break this cycle, a refinance can provide needed monthly budget space to slash the credit card balances and get off the minimum payment treadmill.

 

Bear in mind that in each case above, I am not advocating that our clients take on more debt!  We are not suggesting that they do a cash-out refinance and pay off these other obligations.  That may prove to be a good strategy and might warrant further examination.  But even in cases where a borrower simply does a "rate and term" refinance and lowers the rate and payment on an existing mortgage, the savings that result can go a long way to comprehensively addressing the other components of any household budget.

 

We're here to help when you're ready to look under the hood, roll up your sleeves and do the work.

 

My uncle has a country place, 

 

 

Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

 

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.

 

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283

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Topic:
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Tags:
refinancing
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rob spinosa
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Rainmaker
1,920,621
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Lottie Kendall -  that was the message from our mortgage person at BNI this morning.  Refinance now

Aug 15, 2019 08:01 AM #1
Rainmaker
3,094,531
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Lottie... sent a video/message about refinancing to my data base a few weeks back. 

Aug 15, 2019 08:26 AM #2
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Good morning, Grant Schneider - exploring the idea of refinancing is wise right now. John Meussner mentioned in a post yesterday to plan for longer closings since mortgage brokers and lenders are getting very busy.

Aug 15, 2019 08:30 AM #3
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Nina Hollander you were a few days ahead of the pack with your video message to your database. Good way to spread the word.

Aug 15, 2019 08:30 AM #4
Ambassador
3,101,803
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Thank you for this food for thought reblog  Lottie Kendall ( I was hungry)

Aug 15, 2019 10:12 AM #5
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Rob Spinosa shares good advice, Paul S. Henderson, REALTOR®, CRS 

Aug 17, 2019 05:22 AM #6
Rainmaker
3,254,177
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

A couple years ago we got a newly married couple into a home with a higher interest rate because they had no credit....and we showed them how to build it. A couple weeks ago...they closed on the refi we introduced them to and saved a hefty $500 a month !

Aug 18, 2019 05:02 AM #7
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Sally K. & David L. Hanson - helping your client save $500/month via a refinance must have felt great, one of those real estate moments that make us smile.

Aug 18, 2019 05:05 AM #8
Rainmaker
1,229,741
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

There are so many people/financial scenarios that would benefit from having a good long talk with a Lender, Lottie Kendall.  Refinancing could be the solution for many, Rob Spinosa is so right about that.  But even if nothing formal is pursued, the advice and knowledge gained can be immensely helpful when addressing debt, credit and budgeting.  Especially during times like this when interest rates are dropping, it's a great time to reach out to your Lender to see what possibilities and options exist.  

Gene

Aug 21, 2019 08:52 AM #9
Rainmaker
1,778,175
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I agree, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - the more a consumer knows, the better equipped she is to make a wise decision.

Aug 21, 2019 04:01 PM #10
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