If you’re no longer house hunting and you’ve been in your home for a few years, you may not be keeping a close eye on the current Mortgage rates. And we get it. There are plenty of other interesting articles and videos taking up your screen, but with Mortgage rates at a three-year low, it may be time to check it out!
Right now, interest rates on a 30-year and 15-year fixed rate Mortgage are around 4% APR.1 So what’s that mean for someone who already has a Mortgage and a happy home? It could mean big savings when you refinance. We’ll help explain the benefits of the current low rates and how they can help, the process of refinancing your current home loan, and share additional savings we’re currently offering with our partner Mortgage Center.
What is Refinancing and what are the benefits?
For those not in the everyday real estate world, you may not be fully aware of the benefits of refinancing your Mortgage. When you refinance, you could be given the opportunity to lower your current interest rate on your Mortgage, which could lead to a lower monthly payment and less interest paid over the life of your Mortgage (either 15 or 30 years). Refinancing could also help you pay off your home faster and access your home’s cash equity.
How do you know if refinancing can help you? Check your monthly Mortgage statement or Mortgage loan documents to find your current rate. Next, compare your rate to what you could be paying today. According to Freddiemac.com, the average 30-year Mortgage rates in October of 2018 were 4.830%.2 This year, they’re nearly 1% lower…check out Mortgage Center’s current rates — talk about savings!
But what does that really mean? For example, if you bought your home last year for $200,000 and are paying 4.550% rate2 on a 30-year loan and refinanced this year, you could be saving over $100 each month!1
What about shortening your term? Another way refinancing can help you is if you switch your current 30-year Mortgage to a 15-year Mortgage. Shortening your term may slightly increase your monthly payment, but it could save you a large amount of interest paid over the life of the loan.
How Do you refinance your Mortgage Loan?
We can help! First, you’ll need to decide what kind of refinance is right for you. Are you looking to simply save money by lowering your interest rate? Or would you like to shorten your term to pay your home off quicker? Or better yet, what about accessing your cash equity to make home improvements? No matter the type of refinance benefit you’re considering, our partner Mortgage Center can help!
What’s needed to apply? You’ll need your current loan type, estimated home value (what do you think your home is worth?), and current Mortgage Loan amount. After that, a Mortgage Center Loan Expert will contact you for any further information and to schedule an appointment in person or over the phone.
Is there another closing? Yes, but this time, it’s a little quicker than when you bought your current home. Simply schedule an appointment to sign your documents. At that time, you may need to pay closing costs, which could include, but are not limited to, credit and appraisal fees, taxes, and insurance. See below for discounts on closing costs!
Take Advantage of our additional savings!
Now you know how refinancing could lower your interest rate, lower your monthly payment, or even cash out your equity by refinancing your Mortgage! That’s pretty exciting, but we have even more savings we can offer you. Find out how you can save even more — we’ll take $500 off your closing costs!3
So, are you ready to get started?
1 Mortgage Rates effective for April 1, 2020. Mortgage Rates change daily. Example: Payment of a 30-year fixed rate $200,000 loan
at 2.875% and 75% loan-to-value (LTV) with a credit score greater than or equal to 740 is $ with 2.25 points due at closing. The Annual Percentage Rate is 3.116%. Payment does not include taxes or insurance premiums. The full payment will be greater. Private mortgage insurance is required when LTV is greater than 80% in addition to property taxes and homeowner’s insurance, actual payment will be higher. Offer and rates subject to change. Some restrictions apply, subject to credit approval. 2 Source: freddiemac.com as of April 30, 2019.