Wow! I can honestly say I never thought I would see rates this low. I have been bragging for a year when I refinanced my personal home at 4.5% that we wouldn’t see it lower! And, it seems that the significance of the low rates is getting lost in the blur of such a volatile real estate market.
If you’re not in the market to buy a new home right now (move up, down size, or just try something different), then you should be seriously considering a refinance. With a good credit score, you can get a fixed rate, 30 year loan at 4.25% for no points, and an adjustable rate at 3.25%!
Why consider an adjustable rate? This particular program is fixed for 5 years at 3.25%, and then has a cap that would max it out at 8.25% only if interest rates continued to escalate over the second 5 years. So, if you think you may only be in your next home for 5 years or less, it’s a great option! Also a terrific option to help a college age get into their first home with a really affordable payment.
If you plan to be in your home longer than 5 years, than a low interest fixed rate is definitely the way to go.
If you can swing a 10 or 15 year loan, interest rates are 3.75%!! The rule of thumb is that if the new interest rate is one point below your current rate, and you’re going to be in the home for at least 2 more years, and the fees are reasonable, then it makes sense to refinance.
Interested in exploring options? We are fortunate enough to work with several great local lenders. The rates quoted here are from Sun Trust loan officer, Nina Efird. I would be happy to hook you up….just give me a call! Or, you can visit www.lizmoore.com, click on buying and then mortgage calculators (http://lizmoore.com/buying/mortgage/calcs/index.php), and check out our calculator to see how long it will take to recoup your savings.





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