Rate and Term Refinance in Connecticut

Posted on July 13, 2017 · Posted in Connecticut Mortgage Refinance

Northeast Financial is a Connecticut Mortgage Company located in Middletown, CT.  We are in the center of the state and work with Connecticut residents throughout the state to help them refinance their home loans.  Refinancing your home loan (whether it is your primary residence or an investment 1-4 unit property) is a big decision and should not be taken lightly.  There are two factors to consider with financing your property that you are going to want to take into account:

1. Is the Rate worth it?  Obviously you want the best rate possible when refinancing your home loan.  You are going to want to make certain though that the rate you are getting justifies the cost of doing the loan.  Some lenders will charge you points and fees upfront on a loan (ideally you want to advocate for no – or minimal- points and fees).  If you are paying too much to get your loan then the monthly savings you will get by the lower rate may take years to recuperate.   Your goal should be to get a minimum of 1/2 a point less in rate than you are paying now (with a goal of 1 full percent less or more) and minimal fees on your loan.  This is something that we can help you with.

2. Am I taking a step backwards with the Term?  If you refinance your home loan and get a lower rate – that is great because it will save you in monthly payments.  But if you started with a 30 year mortgage and have been paying into it for 5 years – then refinancing into another 30 year loan (at the lower rate) will mean that the 5 years of interest you already paid count for very little.  Every month you pay principal and interest with your mortgage, but in the first 5 years of your loan you pay more towards interest than you do for principal – which means the majority of those payments did not lower the amount you owe greatly.  An ideal scenario to consider when refinancing is to get a lower rate and get a term close to the amount of years you had left on the previous mortgage.  Terms can be done in 30, 25, 20, 15, and 10 year increments.

At Northeast Financial we have the expertise and the ability to work with you to get a Rate/Term home refinance that makes sense, gets you the most amount of monthly savings, and make certain you are not taking a step backwards.

Call me today for a free consultation,

Thank you,


Michael Meyer
Senior Vice President of Northeast Financial
210 S. Main St Middletown, CT 06457

Company NMLS#117273 




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