Interest Rates Are Down; Is It Time to Refinance Your Mortgage?
You may have a higher monthly payment, but your total interest payment will be reduced significantly by switching to a shorter-term mortgage. shorter-term mortgage refinance example With 25 years and $150,000 remaining on a 30-year mortgage at 5.25% APR, refinancing $150,000 for 15 years at 3.5% APR may result in a reduction of up to $66,645 in interest payments over the life of your loan.
Dropping your rate by just 1.0% – from 5.25% to 4.25% – puts ten percent of your mortgage payment back into your pocket each month. That means for every $1,000 you pay to your lender today, you could reduce your payment by $100. That’s $12,000 saved over the next 10 years – simply by doing a refinance.
The interest rate on a fixed-rate mortgage will vary from borrower to borrower based on loan size, location, your credit score, the length of the loan, the amount of down-payment on a purchase, and whether or the mortgage loan product is either conventional, FHA, or a VA home loan.
· Step 1, Choose a time period with lower interest rates. Watch the market to see how the interest rates are going up and down. When the market reaches rates that are lower than what you’re paying, that’s a good time to refinance.Step 2, Pick a fixed-rate rate over a variable one. When you refinance, make sure you choose a fixed-rate mortgage. If you are currently on a variable-rate.
2 Things You Need to Know to Properly Price Your Home 2 Things You Need to Know to Properly Price Your Home First Time Home Buyers , For Buyers , For Sellers , Housing Market Updates , Move-Up Buyers , Pricing / By Michael Peron In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%).
A Fixed-rate mortgage is a home loan with a fixed interest rate for the entire term of the loan. The Loan term is the period of time during which a loan must be repaid. For example, a 30-year fixed-rate loan has a term of 30 years. An Adjustable-rate mortgage (ARM) is a mortgage in which your interest rate and monthly payments may change periodically during the life of the loan, based on the.
In some cases, your monthly payment amount could drop to $0, and you can switch between plans for free at any time. The IDR plans. your eligibility for refinancing and your interest rate offer. If.
· Mortgage rates have gone down. A one percent interest rate reduction may net significant savings on a $1 million mortgage but will be less beneficial for a $100,000 mortgage. There are costs associated with refinancing that are important to weigh up if you’re thinking of refinancing (covered in more detail below).