Mortgage interest rates fell to historical lows again. We are seeing a lot of people such as first-time homebuyers, people refinancing, and real estate investors taking advantage of these low mortgage rates. If you are thinking that a small difference in rate won’t affect your monthly payment by much, let’s take a look at this.
Let me show you an example on a 30-year $300,000 mortgage that has a current monthly payment of $2,018.80
If that person had an interest rate reduction of 1 percent on the same mortgage, their new monthly payment would then be $1,840.58 – saving $178.22 per month.
Savings over 1 year – $2,138.64
Savings over 10 years – $21,386.40
Savings over 30 years – $64,159.20
Another reason you may want to refinance is it may allow you to drop your Private Mortgage Insurance requirement (PMI). PMI is an additional insurance you pay with a mortgage. As you are refinancing, an appraisal is done to assess the value of the property. If your home is appraised for a higher value, you may qualify to remove your PMI if it meets the appropriate Loan-To-Value ratio (LTV).
Now you are wondering about closing costs to purchase or refinance. In most scenarios, aside from down payment and other fees due at closing, financing charges can be rolled into your monthly mortgage payments.
There are many factors associated in calculations of what your rate would be based on your specific financial situation. If you previously thought you may not qualify to buy a home or what your payment would be, reach out to me and I can give you an estimate. You may be surprised. If you are shopping around for homes and do not have a specific home you know that you are going to buy, I can still get you a pre-approval based on an estimation of a property in the local area. That way you can browse with confidence.
I am a licensed professional at Northeast Financial, based in Middlefield, Connecticut. Contact me today and see what difference it can make with your mortgage. I have access to multiple mortgage lenders to get you the lowest rates.
Office: 844.788.7237 x5264