Is it Time to Refinance?


Owning a home is not only a dream come true but a big financial investment. With rates at historic lows, savvy homeowners can save thousands sometimes hundreds of thousands – by refinancing their current loan. Here are some advantages:

  • Lower current monthly payments
  • Pay off your mortgage faster
  • Save money over the life of your loan
  • Reduce fluctuating interest rate risk by converting from an adjustable rate to a fixed rate
  • Possibly eliminate Private Mortgage Insurance
  • Increase monthly cash flow to use for other major expenses or consolidate debts

Below is an illustration of the monthly savings that can be generated by refinancing into a lower rate – $188 a month or $2,256 a year!

Old Loan New Loan
Interest Rate 6.5% / 6.715% APR 4.5% / 4.691
Current Balance* $150,000 $150,000
Payment (Principal + Interest)* $948.00 $760.0
*This example assumes a 20% down payment on the original loan.

Below is an illustration of the savings that can be generated by refinancing into a shorter term $75,393 over the life of the loan!

Old Loan 30 Year Term New Loan 15 year Term
Interest Rate 4.5% / 4.691% APR 4.0% / 4.179%
Current Balance* $150,000 $150,000
Payment (Principal + Interest)* $760.00 $760.0
Finance Charge $126,912.26 $51,518.96

Contact a Home Team Mortgage loan officer today and discover what your refinance savings could be! hometeamortgage.com

Tom Parker is president of Home Team Mortgage, Ebby Halliday s in-house mortgage source, and a regular contributor to the Ebby Blog. Contact Tom at tom@tlpoffice.com or 972-665-1900.