If you’re following the news, you’re likely aware of the historically low interest rates being offered to current home owners and home buyers.
These low rates are resulting in incredible savings opportunities!
We’ve spoken with homeowners in the past week who are in the process of saving $300-$600 per month through current refinancing.
If you’re unfamiliar with refinancing, we encourage you to read the info below to see if the process might be right for you.
What is a refinance?
A refinance is when a homeowner obtains a new loan to replace the current loan on their home.
Homeowners most commonly refinance to get a lower interest rate on their mortgage, to consolidate other high interest debt, or to gain access to some of their home equity.
Refinance Example (terms used for illustration only and not guaranteed)
How to refinance your home:
Apply
Receive an estimate
Complete lender’s process
Close
The refinance process is similar to the financing process experienced at the time the home was first purchased, though often less-complicated, as the new loan won’t involve first-time home buyer assistance programs or grants potentially involved at the time of purchase.
Refinances commonly cost homeowners little-to-no money out of pocket, as all closing costs can usually be rolled into the new loan.
Should you refinance?
A homeowner should consider a refinance for one of three primary reasons:
To receive a lower interest rate that results in a considerably lower monthly payment and increased savings over the life of the loan.
To switch from FHA to conventional financing or lower/remove PMI payments.
If home was purchased with less than a 20% downpayment, and home value has now increased substantially due to market conditions and property improvements.
We’re here to help you!!!! We live this stuff everyday and are happy to talk with you about a plan and timeline for your home buying/selling needs. We regularly meet with people up to one or two years in advance just to begin the conversation.
Schedule your free, high trust, low pressure consultation today and let’s get started!!!!
Josh & Kevin
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