Question by Mickey O: Will refinancing my mortgage save me money given the current rates out there?
Answer by J M
it would depend on your credit, the type of loan you want, and of course the current rates. your old payment may have a balloon payment on the end so your monthly seems alittle lower or your are not on a fixed rate and the payments can change. you will need to investigate your options. keep in mind if you don’t have a balloon payment on the end that you may pay alittle more a month. but might be less then the balloon in the long run.
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I agree with J M. It may save you money depending on if your rate is adjustable right now. If it is adjustable then you want to get into a fixed rate or a 2/28 or 3/27 ARM that way your rate won’t go up in the next few months like most rates are going to. My husband is a loan officer at a mortgage company. If you want his number you can email me and he can see what some options are for you.
It all varies. What is your current rate? Is it fixed, Interest Only, Adjustable?
If you are looking to save money with a Fixed rate, you will need outstanding credit to get a low interest rate. You can also save money if you pay debt off (such as auto loans & credit cards) and incorporate it into a new mortgage loan when you refinance
This depends on if you have a low LTV (Loan to Value) and OK to Excellent Credit Score.
You can figure out your LTV by dividing your New loan amount that you will be refinancing with your current homes value . The Lower the LTV the better! Even if you have a lower Credit Score the LTV will help you SO MUCH!
Ex) **New Loan Amount** $ 200,000 divided by $ 325,000**Current Home Value** = (0.61) 61%
An LTV under 75% is Good!
If you have any questions feel free to contact me anytime!