It’s official, we are in the middle of another refinance boom here in Michigan. Those who can commit to an aggressive repayment schedule for their mortgage are being rewarded nicely. While 30 year fixed rates are at the same spot we were this time last year, 15 year and 10 year programs are at least a half percent lower.
To see if refinancing is right for you, take this example. Assume a $175,000 loan with an interest rate that drops from 4.75% to 3.75%. That would yield a savings of $1,750 per year, or $26,250 over a 15 year schedule.
Understanding how amortization works and what is the best option for your loan can be confusing. Give us a call to discuss your options, or check out our Amortization Tool to see what you can save by refinancing.
Remember: DO NOT assume you are fine with your current mortgage. It is always a good idea to evaluate this along with your other financial planning, especially when we hit rates that are this low. Obama’s updated HARP program is making it easier to refinance, make sure you don’t miss the boat!
Thanks for sharing this “nugget” with me. I enjoyed watching and listening.
Donna