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Today’s low mortgage rates make refinancing an attractive option for many homeowners. How do you know if it is the right choice for you?
Conventional wisdom says if you can save 1% or more through a refinance and plan to stay in your home for 2 or more years, a refinance is worth considering. This is a good rule of thumb but depending on your particular situation, there are other things to consider.
If you are thinking of refinancing, here are a few questions to ask yourself:- Is your current mortgage an Adjustable Rate Mortgage (ARM)? If you plan to stay in your home past the next adjustment date, you may be able to refinance in a fixed mortgage giving you a stable mortgage option for the long term. If you do not plan to be in your home when your ARM adjusts, you may want to forgo the costs of refinancing.
- Can you reduce the term of your mortgage? Say you have a 30 year fixed mortgage and have been paying on it for 4 years. Depending on your rate and balance, you may be able to refinance into a 25, 20 or even 15 year mortgage with little change to your mortgage payment. By choosing this strategy, you can save thousands in interest and pay off your home even sooner.
- Do you have a second mortgage with a high rate? Homeowners with first and second mortgages can often benefit from a refinance. A refinance can roll both these loans into one mortgage with a lower rate which reduces your payment in the short term and brings significant long term benefits.
- Are you concerned about your home’s value? The housing market has left many guessing what their home is worth. Conventional refinances require at least 5% equity to refinance. However if you have a FHA or VA loan, you have several options with regards to equity when refinancing so it’s worth investigating.
As you can see, there are several variables to consider with a refinance. If you or someone you know is considering a refinance, please call or email me to have a personalized assessment of your options and best strategy.Enjoy this info? Would you like to receive Monday Money Matters – a weekly newsletter with useful mortgage and Charlotte area real estate information? Subscribe here or visit www.RebeccaMadej.com to learn more. -
News You Can Use
What did you think of the Super Bowl and its water cooler worthy commercials? From Betty White getting tackled to Stevie Wonder playing “punch bug,” many were savvy and direct. What if you had 30 seconds to represent you or your company on national television? How would you show prospective clients you are their solution finder and will overdeliver on your promises?Mortgage applications are up and fewer homeowners are seeing declines in value – let’s keep those trends increasing. The Federal Reserve has indicated it will exit the mortgage backed securities market soon – or will it? The Fed sure likes to keep ‘em guessing. What’s for sure is that once the MBS market is back to normal trading, rates will head north. Thinking about refinancing to take advantage of the historic lows? Now’s the time.In real estate news, home sales were up in Charlotte for the 4th quarter of 2009 – the third quarter in a row we’ve seen an increase. As the deadline for the home buyer tax credit nears, we should see a trend. As some local businesses are showing signs of strengthening, we can hope that our region continues to cultivate.Business has definitely picked up which is surely a result of the aforementioned buzz. There’s been a positive energy flowing and it is fun. Dare I say I love my job and this crazy business? I do! Let’s make it a great week and, as always, I’m here to help!Featured Loan Program
Jumbo ARM Programs
Cunningham & Company is able to offer below market rates on Jumbo ARM loans.
- Owner Occupied or Second Home
- 3/1, 5/1, 7/1 and 10/1 ARMs available – Fully amortizing or Interest Only
- Minimum credit score of 700
Have You Heard?
Ladies: Want to get an early start on Spring Cleaning? If you have any dresses/shoes/accessories hanging around your closet that you don’t need, here is your solution. Butler High School is collecting new or gently used prom dresses for its second annual Butler Boutique through the 22nd. All proceeds will go to the Emily Rose Scholarship Fund.Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!