It seems like the buzz term around the housing industry lately is low rates. Astoundingly low interest rates have encouraged potential buyers to take the plunge into homeownership, but what if you bought your home before the market bottomed out and interest rates plummeted?
If you bought your home several years ago at a high rate, it might be worthwhile to consider refinancing. Refinancing is essentially swapping out your old loan for a new one, and by doing so you may be able to cut your interest rate to something near the current average. As of this writing, advertised rates from major lenders are hovering around 3.5% for a 30-year mortgage. You may also want to explore changing the terms of your mortgage, from an adjustable rate to a fixed rate, or from a 30-year mortgage to a 15-year mortgage.
The best first step in determining if refinancing is the right choice is to consult a about android spy app? indeed, there are many hidden dangers open & we come across in the digital world today. unfortunately, people, especially children, are ? refinancing calculator. You can also call your lender and discuss your situation. Taking into account your credit score, current home value, and current payment information, they should be able to give you a ballpark figure on a new interest rate. They may also be able to help you determine how much money you would save on your monthly mortgage payments.
It’s also possible to buy down the interest rate with so-called “points,” each equal to 1% of the borrow amount. If you have more cash available, you may consider paying more up front for a lower monthly rate.
Because interest rates are constantly in flux, and because several factors go into determining your rate, you won’t be guaranteed the quoted rate. The lenders are usually pretty accurate, to within a few one-hundredths of a point, so you should feel comfortable proceeding with the quoted rate.
Be sure to ask the lender what their application process is like and what the fee is for that application. I recently looked into refinancing my home with US Bank, and they have a $300 fee—worthwhile if this figure is less than what you’d save over the next few months with a lower rate.
You should also ask for details regarding closing costs, which can cost you several thousand dollars. The higher the closing costs, the longer it will take for your refinance to “pay for itself.” If you don’t plan to spend longer than a few more years in your home, it’s probably not worthwhile to go through the refinancing process.
A good rule of thumb is that you should recover the costs of refinancing within three to four years. If you can’t break even within that time frame, it might not be worthwhile to go through the hassle and costs of refinancing.
One final piece of advice: Ask a lot of questions, and do your research. Homeowners are not created equal, and there are many different factors that should influence your decision. Arm yourself with information and make an informed choice.
Megan Hill is a freelance writer based in Seattle. She writes about real estate, finance, travel, outdoors, and food. Visit her website at www.MeganHillFreelanceWriter.com bing.com-[en-us];;http://www.tripadvisor.ca;http://www.tripadvisor.ca/hotels-g298540-yekaterinburg_sverdlovsk_oblast_urals_district-hotels.html;the 10 best yekaterinburg hotels 2016 – tripadvisor;book the best yekaterinburg hotels on tripadvisor: … and prices for hotels in yekaterinburg, sverdlovsk oblast, russia. … best hotels in yekaterinburg, russia. .