If you\u2019re planning to sell your home within the next 3 years, the answer is no. Refinancing typically carries closing costs amounting to 3% to 6% of your loan amount, so you need to be planning to stick around long enough to reap the benefit.<\/p>\n
Although 3 years is typical, how long depends upon the interest rate you\u2019re paying now and the interest rate you could get today, so take the time to do the math before making a decision.<\/p>\n
Otherwise, here are 4 good reasons why you should sit down with us at Homewood Mortgage and discuss your alternatives.<\/p>\n
The first and most obvious reason is if you\u2019re paying too much interest! <\/b><\/p>\n
Conventional wisdom says that if you\u2019re paying 1% or more above the rate you could get today, then it\u2019s time to consider refinancing.<\/p>\n
According to Core Logic, more than 1\/3 of homeowners are paying at least 4.5% – and some of that number are likely paying more than 5 or 6%. Refinancing would save them thousands of dollars.<\/p>\n
What if you don\u2019t want to increase the time left on your mortgage?<\/b><\/p>\n
Some homeowners hesitate to refinance because they\u2019ve paid their mortgage down to 10 or 15 years and don\u2019t want to start over. The good news is, taking out a 15 year loan will get you an even lower interest rate \u2013 and if you keep making the payments you\u2019re making now, you\u2019ll have that loan paid off even sooner than your original plan.<\/p>\n
Next: You\u2019re paying mortgage insurance.<\/b><\/p>\n
Mortgage insurance adds a hefty fee to your payment each month, while giving you nothing in return. So if you now have at least 20% equity in your home, refinance into a conventional loan and get rid of that extra expense.<\/p>\n
With home values climbing steadily, you could have more equity than you realize, so check into it.<\/p>\n
Remember: You need to qualify for a conventional loan, since ALL FHA loans now carry mortgage insurance, regardless of your down payment.<\/p>\n
Third, you need to take some cash out of your home equity. <\/b><\/p>\n
If you\u2019ve got some high interest credit card debt to pay off; if you need to invest in some repairs or upgrades to your home; or if you\u2019re carrying a higher interest second mortgage that you could retire, a cash-out refinance could be a wise move.<\/p>\n
Just remember \u2013 refinancing to take out cash for a car, a boat, or a vacation is a very, very poor idea.<\/p>\n
Four: You\u2019d like to shorten the life of your loan.<\/b><\/p>\n
Yes, you could do this by simply making a larger payment each month, but why not take advantage of the low interest rates available for 15- year mortgage loans – so that more of those dollars go to reducing the principal each month?<\/p>\n
To refinance or not to refinance should depend on just two things:<\/p>\n
We\u2019ll be happy to discuss your situation with you. Then we can get you pre-approved for a loan and tell you what interest rate you\u2019d be offered.<\/p>\n
After that, we\u2019ll help with the calculations so you can see the total costs and the total savings you\u2019d see with a 15-year loan or a 30-year loan.<\/p>\n
We\u2019re the Mike Clover Group at Homewood Mortgage \u2013 and we\u2019d love to help you save money!<\/b><\/p>\n
Just give us a call at 1.800.223.7409.<\/b><\/p>\n
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Mike Clover<\/b><\/p>\n
R.M.L.O<\/p>\n
Homewood Mortgage,LLC<\/p>\n
O: 469.621.8484<\/p>\n
C: 469.438.5587<\/p>\n
F: 972.767.4370<\/p>\n
18170 Dallas Parkway<\/p>\n
Ste. 304<\/p>\n
Dallas, TX 75287<\/p>\n","protected":false},"excerpt":{"rendered":"
If you\u2019re planning to sell your home within the next 3 years, the answer is no. Refinancing typically carries closing costs amounting to 3% to 6% of your loan amount, so you need to be planning to stick around long … Continue reading