Many homeowners are wondering if now might be a good time to refinance their current mortgage. Rates have been low and refinancing activity has been brisk, even before the first diagnosed U.S. case of COVID-19.
According to Yahoo!, refinance searches began rising way back in February as mortgage rates dropped to lows not seen since the spring of 2016. In addition, record-low rates have forced lenders to grapple with a massive demand for refinancing at a time when they must also adapt to performing their work remotely.
To help you determine whether there is opportunity with your specific mortgage, below we provide recent examples of situations where we have helped borrowers refinance to accomplish their goals.
Sandy & Tom – Seeking to refinance to reduce their monthly payment
Sandy & Tom were seeking to take advantage of the current interest rate environment with the goal of freeing up monthly cash flow by possibly reducing their mortgage payment.
- Former loan amount: $485,400
- Former interest rate: 4.00%
- Former loan term: 30-year
By reviewing their current situation, we were able to reduce their interest rate to 3.375% and save them over $300 per month. Sandy & Tom received a lender credit to cover all closing costs, as well as $2,000 cash back.
David – Refinance to reduce his loan term and save money in interest
David’s goal was to shorten the life of his loan from 30 years to 15 years allowing him to pay off his mortgage well before retirement. In addition, he wanted to reduce his current interest rate and achieve cost savings over the life of the loan.
- Former loan amount: $306,200
- Former interest rate: 4.25%
- Former loan term: 30-year
In reviewing his current situation, we were able to shorten the term on David’s loan to 15 years and reduce his interest rate to 3.00%. He also received a lender credit to cover the majority of the closing costs. By shortening the loan term to 15 years and reducing the rate, David saved over $108,000 over the life of the loan
Should you refinance now?
If you currently have an Interest Rate above 3.75% or would like to shorten the term on your existing loan now is the time to take advantage of this current low rate environment.
If you have questions or would like a complimentary consultation, please contact your advisor at Sensenig Capital or reach out to us directly via the contact information below. We are happy to review and determine if it makes sense for you to refinance at this time.
Mike Yahrling
M.Y.Mortgage Services
Phone: 215-766-1422
Email: [email protected]
