Mortgage rates are very low, which makes now a great time to be a homeowner or homebuyer.
Mortgage rates are the lowest they have been in the last three years and over a point better than last year at this time! If you purchased in the last 12 months it would be very wise to look at a refinance right away as rates are not guaranteed to stay this low. With a refinance you have the ability to lower your monthly payment substantially and or shorten your term length with very little monthly payment increase. This means now is the perfect time to refinance, and today I’m joined by Nick Seidell of Silverton Mortgage to explain why.
In short, refinancing will shorten your mortgage term, save money on your monthly mortgage costs, and help you get cash out of your property. Obviously, the size and scope of a refinance vary from person to person, but for every $100,000 you borrow, you should be able to save around $60 per month if you save a point on interest rates.
For example, if you bought last year at a rate of 4.75% for a 30-year mortgage and refinanced this year, you should get a rate of about 3.75% if you bought now. An extra $60 per month doesn’t sound too exciting, but if you plan on living in your home for three years or longer, it’s definitely worth the cost to refinance. That equates to roughly $700 per year—not a huge amount, but something that will improve your cash flow and give you a great return on investment.
Also, keep in mind that if your home is worth more than $100,000, you’ll save more. If you bought it for, say, $300,000, you’ll save $180 per month.
An extra $60 per month doesn’t sound too exciting, but if you plan on living in your home for three years or longer, it’s definitely worth the cost to refinance.
With rates being super low, affordability is high, which makes now a great time to be a homebuyer as well.
If you want to refinance and you bought your home through the Janice Overbeck Real Estate Team, Silverton Mortgage is offering $500 in credit for every $100,000 you borrow if you work with them. If you did your original loan with Silverton Mortgage, you’ll receive a $1,000 credit for every $100,000 borrowed.
If you have any questions about this or any other real estate topic in the meantime, don’t hesitate to reach out to me. I’d love to help you.