Your Mortgage Might Be Due for a Check Up

The last few weeks have been surprisingly busy at work with refinances. Although rates have only come down slightly, we have seen more interest than expected. I thought I would share a few reasons clients are refinancing

Last week, we had a client refinance from a 30-year fixed rate in the high 6’s to a 15-year fixed rate in the mid 5’s. Their loan amount was around $475,000. Although their payment will go up about $600/month, they will save over $125,000 in interest over the life of the loan.

Another client had accumulated $60,000 of credit card debt due to a divorce and unexpected home maintenance projects. Her current rate is just a little higher than the refinance rate, but by increasing her mortgage and paying off her credit cards, she will be improving her cash flow by over $600/month.

Of course, there are also clients who are refinancing to lower their payment. We also met with a previous client who had a 6.625% interest rate on a $625,000 mortgage. By refinancing into a 30 year fixed rate at 5.875%, they will save around $350/month.

If you have questions about refinancing, please don’t hesitate to reach out.