Date post: | 20-Jan-2017 |
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BEST TIMES TO REFINANCE
YOUR MORTGAGE
Is It Time To Refinance Your Mortgage?
There are a number of reasons to consider
refinancing your mortgage.
If you are eligible for a VA Loan, or even if
you currently have one, there may be no
better time than the present to investigate
refinancing options.
LOW INTEREST RATES
While interest rates are
currently at historical lows, the
widely held consensus is that
the Federal Reserve Board will
begin slow, modest periodic rate
hikes in the immediate future.
It is a great time to lock in at
the current rate before that
acceleration begins. Check
the existing rate of interest
on your mortgage.
It is possible that refinancing
now may decrease the interest
rate associated with your
mortgage. Lowering the interest
rate can have dramatic results.
Generally it will decrease the
dollar amount of monthly
mortgage payments, while also
decreasing the overall amount
you will pay out during the life
of the loan.
Veterans who are eligible for a
VA Loan may enjoy some extra
perks during refinance.
Closing costs such as a down
payment, or fees associated
with your refinance, may be
lower than those paid on
traditional loans.
Your VA specialist will calculate
these types of potential costs
for you.
FRINGE BENEFITS OF LOW INTEREST RATE REFINANCING
One of the often overlooked benefits of
refinancing during periods where fixed rate
loans are tied into low interest loans is the
ability to reduce the term of the mortgage.
A mortgage loan term is simply the number
of years a loan is financed for. A fixed rate
loan is a loan whose interest rate is locked in
and will never be subject to increase.
It is common to finance a home for periods up
to 30 years. Many home owners choose the
longest term possible in order to decrease the
amount of the monthly payment.
While this is a good option, it is also an
option that causes the amount of money paid
back throughout the years to be considerably
higher than what would be repaid on a
shorter term loan.
With interest rates at rock bottom, there may
never be a better opportunity to refinance for
a shorter term loan.
Because rates are so low, you might be pleasantly
surprised at how reasonable monthly payments are
on a shorter term mortgage.
The amount of savings on short-term financing can be
substantial. Shift those savings over to your retirement
fund and create a win-win for the family’s future.
FIXED VS. VARIABLE
In the past it was fairly
common to get creative
with mortgage financing
by tying loans into a
variable rate.
Variable rate loan
payments fluctuate over
time, often increase in a
dramatic fashion, and can
increase when the Federal
funds prime rate rises.
For those with a variable or
adjustable rate mortgage,
there is no better time than
the present to refinance and
get locked into a low
interest fixed rate mortgage.
Savings on a fixed rate
mortgage, particularly at the
current low rate, will add up
nicely over time.
If you are uncertain about whether or not refinancing is the best option for you, take time to sit down with your VA specialist and discuss your unique situation.
In just a matter of a few minutes you can determine if refinancing is the best financial move for your family’s fiscal health.
Mortgage Originator Jimmy Vercellino,
specializing in VA loans, helps veterans
use their VA loan benefit to their
greatest advantage.
Be a proud homeowner today.
For more details call 480-351-5904 or
visit the site www.valoansforvets.com
Jimmy Vercellino, NMLS 184169
Mortgage Originator Specializing in VA Loans
The views expressed here are those of the individual author and do not necessarily represent those of First Choice Bank
(NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764). Equal Housing Lender.
7702 E. Doubletree Ranch Road, Scottsdale AZ 85258 The views expressed on this site are those of the individual author
and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #:
210764). Equal Housing Lender.