Mortgage Refinance Smart: Real Estate Refi NewsBy Nathaniel Hutchinson on April 23, 2012 with 0 Comments
According to the most recent Primary Mortgage Market Survey from Freddie Mac, 30-year fixed-rate mortgages averaged 3.90 during the middle part of April, with 15-year FRM averaging 3.13 percent. The astoundingly low rates make now a perfect time for existing homeowners to consider mortgage refinance, especially if they fall into one of three categories.
Those Who Need Money
If you are having trouble managing your monthly bills, mortgage refinance could be the answer. If you are currently struggling with high payments associated with a shorter loan, expanding to a 30-year plan should help you lower your mortgage payments. Because current interest rates are so low, you can get a more manageable loan. This will allow you to free up money to pay down credit card debt and enhance the overall quality of your life.
If you are an older American still paying on a 30-year loan, mortgage refinance can help you get rid of that burden before you retire. Low rates mean you can get a 15-year loan at a much lower cost. Because you save on interest fees, you’re able to pay more toward the balance every month. This allows you to pay off your house much sooner; so you won’t be burdened with monthly house payments, when you’re supposed to be enjoying your retirement.
Financially Stable Homeowners
If your finances look a lot better than they did when you first bought your home, getting a new mortgage can save you a lot of money. Most likely, the interest fees associated with your original loan are astronomical compared to the ones being offered today. By switching to a 15-year loan, you can save thousands of dollars in costly interest charges. This is a great strategy for people who can afford the higher payments. In the end, an investment like this can go a long way toward promoting a stronger financial future for homeowners who aren’t currently struggling with financial problems.
Although a good refi loan can save you a lot of money, you need to consider one important point. Fees associated with the new loan can be relatively costly. Before you sign anything, do the math to make sure these fees won’t siphon away too much of your savings; otherwise, your refi strategy may not prove to be so valuable after all. Also, it’s be sure to use a mortgage calculator before contacting a lender.