TIME TO REFINANCE MAY BE “NOW”!
Have you been seeing what has happened to interest rates in the last few weeks? Well, rates are lower than they have been in 42 YEARS. For loan amounts up to $417,000.00 rates are 3.875% or less with “0” costs. Jumbo loans over that amount are within ¼ to 3/8% of those rates. For example if you have a $400,000.00 loan at 5%, by refinancing, you will reduce your payment by $375.00. That’s an incredible improvement, and worth the effort to apply, I would say.
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What about those who bought in the last year or two with FHA financing? Well, you don’t even have to qualify. We can get you a substitute loan at the lower interest rate if the difference in rates is sufficient. Also, if you’d like to do some improvements to your home, you can get an FHA 1003 home improvement refinance for more than the value of your home. And with interest rates so low, the payment on the new loan may be LOWER than your current payment!
And by the way, are you, or someone you know waiting to buy until prices come down further? Well, let’s suppose in the next year, prices drop 5%, but interest rates rise 1%. Take that same $400,000.00 loan. It will now be 5% less, or $380,000.00. However, your payment will be much higher, $2,041.00/month vs. $1,880.00/month now. Or, taken another way, that $2,041.00/month will by you a $428,000.00 mortgage today. You’d have to see a $28,000.00 drop in values to just be back where you are now. It really doesn’t make much sense to wait, does it?
Want to know more about what you can do to save money, reduce your payments or take advantage of the current finance market, call us now. We can help you make the right decision. Our phone, 949-707-4472, or e-mail
frankdilauro@cox.net.