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When should I refinance my mortgage?

As a Mortgage Broker, we read many articles about when a homeowner should refinance.  The problem is, each homeowner is different, each loan is different, and each goal is different!  Just because it’s fun to review and crunch numbers, let’s take a look at this example:

Client A has a mortgage rate of 5.25%.  Client B has a mortgage rate of 5.50%.  If both refinance into 30 year fixed rates of 4.25%, who saves more?  That’s the problem with some of these articles!  Without knowing the loan size for this example, we can’t really tell how much a person will save per month.  In this example, if Client A has a $200,000 mortgage and refinances from 5.25% to 4.25% they save roughly $120 a month.  If Client B has a $100,000 mortgage and refinances from a 5.50% to 4.25% they will save roughly $75 per month.  Both great reasons to refinance, obviously, the higher the mortgage the higher dollar value in savings.

What if I told you that we could refinance your mortgage to a lower rate and you will still pay the same amount per month?  Doesn’t make sense does it?  How about we can refinance your mortgage (closing costs included), you keep the same payment, and we reduce 8 years off your mortgage?  With 15 year rates at record lows this is a popular option many of our clients are taking.  Needless to say the tens of thousands saved in interest payments over the life of the loan, many of our clients are paying less with lower terms (depending upon their initial interest rate).

Don’t feel like you have to fit the mold of “When to refinance” based on an article written that is not specific to you… call Maple Tree Funding and let us work out scenarios for you!  Also, as a great late Christmas gift, feel free to refer your friends or family to us for their annual mortgage checkup… helping them save hundreds a month and tens of thousands in interest is one heck of a gift! We’ll even give you credit for it! Start the process by clicking HERE or sharing this page!

Think Mortgage… Think Maple Tree!

Posted in Mortgage Basics & Information on Thursday, January 12, 2012 by Maple Tree Funding