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How to save $1000. Dollars A month!
In the last month, I have talked to two past clients who have not made time to refinance since they purchased their homes in 2006 & 2007.
With interest rates dropping steadily over the last few years I thought for sure everyone that could refinance had now done so, possibly even more than once! I was flabbergasted to hear that they had not, and while not responsible, I couldn’t help but wish I could have gotten to them sooner, as waiting literally has costs both of them thousands of dollars.
If you have a mortgage rate that is above 4.5%, fixed or adjustable, you need to make time to explore your refinancing options.
Before you call a lender you should find out if you have the equity in your home to refinance. Prior to the 2008 banking crisis, getting a loan and being able to refinance was a breeze. But since the crash, it is not a given and you will want to make sure you can refinance before you get too far down the road. Banks today, generally want to see 20-25% equity and since prices have also fallen or remained flat over the last few years, if you purchased with little down, refinancing isn’t always an option (unless you can put more equity in).
For the two clients that I spoke to, both are now connected to lenders and their refinances are in process. Both of them will drop their interest rates in half saving them each between $800- $1000. a month.
I can help you determine if you have the equity to refinance. I can also help you find the right mortgage representative. One you determine that you can refinance, you’ll want to consider which financing program is best for you by considering estimated closing costs, how much time you have left on your loan and if you want to switch to a fixed or an adjustable or a 15 year mortgage instead of a 30.
It may sound complicated and you don’t want to make time to think about it, but what would you do with an extra $500, $750 or $1000 bucks a month?
