We have a guest author today. Mark Melany from Coldwell Banker Mortgage brings up the point that some were on the fence about refinancing a home loan. Here’s a few points on the subject…
There isn’t much good news in this battered economy, but the talk that the recession is coming to end is bringing a welcome break to some homeowners. Interest rates have dropped to historic lows, and many are taking advantage of this by refinancing their mortgages.
On April 2, 2009 Freddie Mac reported it’s lowest recorded interest rates in 70+ years. My rates this past Friday we’re actually better then they were back in April. With fixed rates under 5% and my 5-1 ARM under 4%. It might be the perfect time to take advantage of the opportunity!!!
Some homeowners are saving hundreds of dollars per month and will save tens of thousands over the course of their mortgage. Most who have good credit, a job and some equity in their homes can qualify for refinancing, and those who find a significantly lower interest rate can save a lot. Refinancing also can be good for those looking to move from adjustable to fixed-rate mortgages.
Finding out whether refinancing is the right move can be as simple as sitting down with me your local Mortgage Advisor who will crunch the numbers for you. You have to calculate your monthly saving and compare it to the cost of the refinance. Some people are waiting because they believe rates are going to drop more, but you can’t do that. It either makes sense or it doesn’t.
Waiting for rates to drop is like picking the bottom of the stock market to buy…it’s simply impossible. With our Rate Protection program you get the guarantee of today’s low rates but if rate fall further you get the benefit of a free float down option.
Thanks Mark! If you need to talk to a lender and don’t know where to start, I’m sure Mark or any of the lenders on my Mortgage Page would be glad to chat with you.
