You’ve heard it on the news, from family and friends, and on social media – rates are low! What does this mean for you? In a typical mortgage payment, your monthly payment breaks down into four or five categories:
- Principle – The amount that goes toward paying down your balance.
- Interest – The amount you are charged for borrowing the principle.
- Taxes – The amount the government collects for your property.
- Insurance – The amount paid toward your home insurance policy.
- Mortgage Insurance – In some cases, a fee paid monthly if your home equity is less than 20%.
Of these categories, there are only a few that you have “control” over (principle, homeowner’s insurance, and mortgage insurance). The rest fluctuate based on market conditions. With rates in the two’s, now is the perfect time to take advantage of reducing your monthly interest payment with a refinance. Additionally, there are refinance options that could eliminate mortgage insurance from your monthly mortgage payment. Now, why would you continue overpaying for something when you could put the money back into your wallet?
If you think refinancing is expensive, or takes too long, let us stop you right there as we debunk these refinance myths.
Myth: Refinancing Is Expensive
Remember how much $$$ it cost to purchase a home? Refinancing is a different experience. You do not have to make a down payment or bring money to the closing table. Our team will wrap any fees into your new mortgage. Don’t worry – our fees are not set to break the bank!
Additionally, when you refinance, you can skip a mortgage payment. Just think about the options you’ll have available when you free up that part of your home budget!
Refinance costs are typically wrapped into your new loan. When you refinance, you skip a mortgage payment.
Myth: Refinancing Takes A Lot of Work
Once you complete your application and upload your documents, there is no more heavy lifting on your part. You’ll have paperwork to review and sign, but you won’t have to worry about lining up home inspectors, appraisers, etc. Sit back, relax, and countdown until savings day!
Complete your application, upload you documents, and sign your paperwork. That’s it!
If you have never refinanced and think this is too good to be true, well…it’s not! Refinancing is a real opportunity for you to control your mortgage payment’s destiny. Contact our team of professional loan officers. We are happy to answer your questions and discuss your refinancing options! 410.878.9730