It s Time to Think About

30 year mortgage Refinance Rates


There’s a lot of hype about refinancing mortgages. You’ll hear, “Rates have never been lower!” or, “Refinance now to lock in your savings!” There are even special products like “streamlined” refinancing.

Like anything else, you need to determine if a refinance is right for you based on the specifics of your mortgage. Here are some guidelines to get you started:

Local experts you can trust.

Find an ELP

The Break-Even Analysis

A refinance makes sense when you can lower your interest rate enough to pay for the closing costs before you plan to sell your home.

Basically, just estimate how long you plan on staying in your home. Then figure out how long it will take for your monthly savings to more than make up for what you would pay in the refinance closing costs. The refinance only makes sense if you'll be in the house long enough to realize the actual savings.

Points, ARMs and Seconds

When you’re gathering quotes for a refinance, ask for a par quote or zero quote. That means the closing cost estimates will not include points or origination fees. Don’t pay these fees, which are simply pre-paid interest. The savings, if any, don’t justify the up-front expense.

If you have an Adjustable Rate Mortgage (ARM), Dave will almost always recommend you refinance into a fixed-rate mortgage. Even if you have to write a check to pay for the closing costs, it’s worth it to avoid the risk that your payments could go up when the rate adjusts.

A lot of homeowners with second mortgages want to roll it into their first mortgage with a refinance. Not so fast! If the balance on your second mortgage is less than half of your annual income, pay it off in Baby Step 2. If not, go ahead and refinance it with the first mortgage and pay it off in Baby Step 6.

Going from 30 to 15

When you buy a home, if you’re not paying cash, you should get no more than a 15-year mortgage. However, if you already have a 30-year mortgage and a good rate, you don’t have to go to the expense of refinancing just to get the shorter term. Just calculate what your monthly payment would be on a 15-year term and be disciplined about paying that amount.



Share this article





Related Posts



Latest Posts
Loan Procedures
Loan Procedures
The days of filling out the HUD-1 settlement…
Conforming loan rates
Conforming loan…
2015 Loan Limits: 10th Year At $417…
30 year mortgage Refinance Rates
30 year mortgage…
There’s a lot of hype about refinancing…
Bankrate mortgage Graph
Bankrate mortgage…
Maybe the rent isn t too high. Or maybe…
Home loans types
Home loans types
Veterans who possess an adjustable rate…
Search
Featured posts
  • Latest 30 Year Mortgage Rates
  • Lowest 30 Year Mortgage Rates today
  • Current 30 Year Mortgage Rates NY
  • 30 Year fixed mortgage refinance Rates
  • Mortgage 30 Year fixed Rates
  • Lowest 30 Year Mortgage Rates in history
  • 30 Year Mortgage Rates VA
  • Mortgage 30 Year Fixed
  • 30 Year Mortgage Rates today
Copyright © 2020 l www.scarredforlife.info. All rights reserved.