Let us help you find the lowest possible mortgage interest rates available. There are many lenders offering a variety of mortgage loans including fixed interest rate mortgages and adjustable interest rate mortgages.
There are so many mortgages to choose from and so many decisions to make. We can guide you in securing a home loan to buy a home or refinance your current mortgage loan.
Did you know mortgage interest rates today are at record lows? Now the probably the best time in a generation to buy a home since current mortgage interest rates are so low and home prices have come down considerably since the housing bubble.
Mortgage interest rates today make refinancing your home mortgage loan worthwhile if you have the required equity in your home and the current mortgage interest rate on your loan is at least 100 basis points (1 percent) higher than current mortgage interest rates. Right now 30 year mortgage interest rates are under 4.00%, if you have a mortgage loan with a mortgage interest rate of 4.75% or higher refinancing makes financial sense and will save you money in mortgage interest payments
If you can afford higher monthly mortgage payments you might consider refinancing from a 30 year mortgage loan to a 15 year loan. Mortgage interest rates on 15 year loans are always lower than 30 year loans. So between getting a lower mortgage interest rate today than your current loan, if you refinance to a 15 year mortgage the mortgage interest rate will be even lower.
Some banks, mortgage companies and credit unions are offering 15 year mortgage interest rates under 3.00% if you’re willing to pay points on the home loan. You can also roll the points and fees into the loan if you have enough equity.
Home equity is the amount of value your home has that you own. In other words home equity is the dollar value difference between the balance you owe on your mortgage and your homes worth. If your home has a appraised value of $250,000 and the amount of money you owe is $150,000 the equity in your home is $100,000.
Now if you’re buying home most lenders require that you put 20% down payment and when refinancing they don’t lend you more than 80% of the value of your home (refinance with cast out). Some lenders will lend you more but you’ll have to pay private mortgage insurance (PMI) which is insurance you pay for each month that protects the lender if you default on the loan.
There are many mortgage lenders out there that will lend more than 80% LTV. All you have to do is shop for and compare mortgage interest rates online. When refinancing if you don’t take any cash out you will find most lenders will go higher than the 80% LTV when refinancing. for related information visit : https://www.consumeraffairs.com
If you’re not taking any cash out of your home when refinancing you might find a lender going up to 90% or more. There are also FHA loans which allow for up to around 97% financing on a home purchase or a refinance. An Obama government program called “Making Home Affordable” allows homeowners to refinance a loan held by Freddie Mac or Fannie Mae with a lot higher Loan To Value (LTV) ratio, even over 100% in some cases.
Refinancing brings many benefits but there is also a cost. When you bought your home you paid thousands of dollars in closing costs, you’ll have to pay those fees again. Though if you refinance with your current loan provider they might be willing to do a loan modification with reduces fees. For example, say you have a 30 year fixed rate loan or a 5 year adjustable rate loan and what to change it to a 15 year fixed rate loan; they might change it without requiring many of the closing costs.
Current mortgage interest rates today have fallen to record lows so and home prices have fallen as well. If you’re on the fence waiting to buy or refinancing you should do so now because mortgage interest rates and refinance rates have nowhere to go but up.
When refinancing if you do choose a new lender you will pay settlement costs including an appraisal, title insurance, document preparation costs and other costs. Even with these fees in the long run if you refinance to a lower mortgage interest rate you will come out ahead.
I know this is a lot of information to take in. To sum up refinancing a home loan makes financial sense if the mortgage interest rate on your loan is at least 1.00% higher than prevailing mortgage interest rates today. If you’re buying a home you can get a lot more home now than you could a few years ago because home prices have come down and mortgage interest rates have come down.
Another factor to consider about refinancing is make sure you’re not planning on selling in a couple of years because the fees you pay on refinancing you won’t re-coop during that time.
The most important step is to shop around and compare mortgage interest rates to get the lowest mortgage interest rate possible with the lowest amount of fees and closing costs.