So you think there isn’t enough savings or incentive to refinance? You owe it to yourself to use this tool to understand YOUR NUMBER.
Posts tagged AMORTIZATION
Amortization is the key!
No appraisal needed – Refinance now
Rates are still at historic lows during this refinance boom, but there are still people not taking advantage in Michigan. What if we told you that No Appraisal is required on refinance transactions? Got your attention now? Let’s look at some numbers.
Currently, the average interest rate for home owners across the United States is 5.1%. At this time, 30 year fixed rated mortgages are at 4.25%. Say we have a borrower with a $175,000 loan and assume they are three years into their mortgage payments. By refinancing to the current rates and making the same monthly payment, they would save $46,500 over the life of the loan. Big money!
Right now, about one out of every five transactions we do are not requiring an appraisal. Yet the new 2011 HARP guidelines set to go in effect soon are hoping to bring that number up so that 4 out of 5 can refinance without an appraisal.
If you want to see how much potential money you could save by refinancing, you can check out our amortization tool for yourself on our site by clicking here. We’re going to let the math do the talking!
Refinance BOOM
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!
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