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|
|Payment (Principal + Interest)*||$948.00||$760.0|
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%|
|Payment (Principal + Interest)*||$760.00||$760.0|
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 email@example.com or 972-665-1900.