5 Reasons to Refinance
Mortgage Rates At All-Time, Historic Low Levels
The average rate for a 30-year-fixed mortgage has dropped to the lowest levels since Freddie Mac began surveying rates in 1971. There has never been a better time to purchase a new home or refinance your existing mortgage. You can save money every month for the life of the loan. Here are a few good reasons to refinance:
Reduce your interest rate
Securing a lower interest rate is one of the top reasons for refinancing. This adjustment can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.
Remove private insurance
Many loan rograms require private mortgage insurance, which is designed to protect the lending institution from loan default. By refinancing, you may be eligible to remove your private mortgage insurance.
Change your loan program
At some point, homeowners who have an Adjustable Rate Mortgage (ARM) usually find they would like to switch to the stability of a Fixed Rate mortgage. I can provide you with loan comparisons to find out if you can save money with another type of loan program that might work better for you.
Credit score has improved
Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates. If you haven’t checked your credit score in a while, it’s a good time to call The Leaman Team: (800) 301-3405.
Considering a refinance? I will keep you alerted to interest rate changes
I continually monitor rates. For clients interested in refinancing, I alert them of interest rate changes so they are ready at the best time to lock in a new rate. I will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and the purpose of the refinance. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. I will want to know what the current property value is, how much equity you have built up, and your current credit score.
The Leaman Team wants to make sure your questions are answered. Please call The Leaman Team today to discuss your home financing: (800) 301-3405 or email Team@MaxLeaman.com.