Rates are low. Should I be Refinancing?

Mortgage Interest Rates are hovering near historic lows. Should YOU refinance?

Minnesota and Wisconsin homeowners - The first rule is that there are no rules. You should refinance if it makes sense for you. Many people still think the "Rule Of Thumb" is that that if you could lower your interest rate by 2% or more then you should refinance; Depending on your situation, it may make sense for you to refinance even if you can lower your rate by only 1/2%.

It's time to seriously think about refinancing your current mortgage, especially if your interest rate is 1.0% or higher above the going rate. Rates are still great, and are the lowest they have been in years.

Refinancing lets homeowners reduce their monthly payment, slash thousands of dollars off the total cost of the loan, and even arrange "cash-out" refinancing if they want to pocket some extra money to be used for any purpose. Buy a car, pay off a car, credit cards, student loans, whatever! It makes sense to refinance if you can recover your costs and make a fair return on your investment before you plan to sell your home or pay off your mortgage. We can help you calculate what your refinance break-even point is.

Many times, the savings may be obvious. For example, the borrowers were going to save over $15,000 over 48 months.

A more typical case is one where there is a closing cost of, say $4,000, and a saving of $150 a month with the new loan. If you can get your cost back within three years, you are going to be in the house at least that long, and have lower payments thereafter, then refinancing definitely makes sense for you.

SHOULD YOU REFINANCE? Use our mortgage savings calculator to find out!

Be Smart… Ask Questions, and Get Answers!

(C) 2011 - Joe Metzler - Mortgages Unlimited, St Paul, MN #274132. ReRe-blog but do not steal!