Since home mortgages are one of the biggest purchases of life for most people, even a little bit of decrease of rate can prove to be of immense financial relief. For many, now is the best time for refinancing mortgage in order to retrieve a huge amount of money.
Over the past few years, the US economy has witnessed a range of fluctuations, and with that, the mortgage rates have fluctuated from time to time as well. Many people do not even realize that they are actually paying more mortgage than they really should. That is because, after signing the papers initially, they never again consider the rate fluctuations that happen over the period of 20 or 30 years. Smart customers are very aware of such fluctuations, and try their best to extract benefits from such fluctuations.
You may feel like refinancing is too much of a hassle, and hence, not worth your time at all. However, consider this. Suppose your loan tenure is 30 years at 5%, and now, the same mortgage can be obtained for a rate of just 4.45%. Even though 0.65% may not seem a huge decrease, yet if you do the math, you will find that you will end up saving $3400 in the long run. That amount of money is certainly worth a few hours of hassle for most people. In case you pay about $600 monthly as mortgage, that means you will not have to repay half year’s mortgage!
At times, changing mortgage lender may prove to be beneficial in other ways too. For instance, if your current lender does not have multiple repayment options, you can change that by choosing another lender. Also, there may be other reasons why you may not be too satisfied with your present lender.
There are people who refinance because they no longer want to deal with adjustable rate mortgage, or certain other balloon payment. The mortgage market is quite competitive, so in case you have decent credit history, most mortgagers will be happy to agree to your terms.
If you feel that you can get a better interest rate by refinancing, or that another lender may be able to provide better overall customer service, it may be high time that you refinance. A little bit of thinking combined with smart decision making can not only save you lots of money in the long run, but can also provide you mental satisfaction in terms of superior customer service from your new lender.
For more information, call 877-438-1199 to speak to one of our friendly Mortgage Professionals.
