Special article brought to you by Econ Mortgage
You’ve likely noticed that home mortgage interest rates have dropped this year. Interest rates are at historic lows right now! Even if you refinanced in the last year, it could still make sense to refinance and take advantage of the low rates. Many homeowners are refinancing home loans they got last year because of the huge savings that come with these low rates.
SHRINK THOSE INTEREST PAYMENTS
When you refinance at a lower interest rate, your monthly payment will be lower, and you will typically pay a lot less in interest over the life of the loan. Those lower payments can add up to thousands of dollars in savings over the course of many years of loan payments.
HOW LOW CAN THEY GO?
You may be tempted to wait and see if rates go lower before you refinance. There’s always a chance they could go lower, but they’re already so low, there’s not much room for them to go down. There is a risk is that rates will go up and you’ll end up with a higher rate, or missing the opportunity to refinance at a lower rate.
HOLD ONTO YOUR CASH
By lowering your monthly mortgage payment, you get to keep more of your hard-earned money each month. It’s never a bad thing to keep your cash, but that extra money could come in real handy during these uncertain times.
CRUNCH THE NUMBERS
The only way to really know if a refi makes sense is to have a loan specialist give you a quote. They can plug in your home value, your credit score, and other relevant factors to give you a good idea of what your new monthly payment would be.
It doesn’t hurt to get a quote and see if the numbers make sense in your personal situation. Look at the numbers to see how much you can save and how soon you’ll break even from the refinance costs. You may be surprised how much you can save even if you got your current loan in the past 12 months.