Refinance Home Loans
- To save money by lowering your payment and/or interest rate or shorten the term of your loan, and
- To get cash from your equity (or a combination of the two).
Sometimes, if the interest rate drops enough or you are paying off credit cards and autos, you look at both options. You should always write out some goals for the refinance. List what are you trying to accomplish and prioritize them. Lenders use a term of “Net Tangible Benefit” to be sure you are gaining financially in some way from the refinance. Don’t over borrow but don’t under borrow either. In the Payment Calculator you can enter different amounts of loans at the same interest rate and see how much it will change the payments.
Many consumers base their decision on the lower payment or the cash they are able to get. You should base your decision on whether or not the benefits outweigh the costs. This is a basic cost benefit analysis and Theresa Springer can help you with this to make sure the whole loan and outcome makes sense for your individual situation.
Another frequent question is, “Are the interest rates at the point I should refinance or should I wait for them to go lower?” If you are saving enough at the interest rate today to accomplish your goals or recover the costs in a reasonable time (see below), then do it. Timing the interest rate market is difficult. There is a common misconception that you need to save 2% – but this applied when consumers owed $30,000 to $40,000 on their homes. At the average home in the $150,000 range today, even a 1% savings may be worthwhile. If you are consolidating bills or paying off a second mortgage, the mortgage interest rate could even rise and save you money. Theresa will help you look at all the refinance options available, then you can choose what puts you in a better financial position now and into the future.
Some questions to ask about your refinance:
- Is your current interest rate at least 1% higher than the loan you are considering?
- Is your current loan an ARM (Adjustable Rate Mortgage) and you’re thinking of converting to a low fixed rate?
- Are you planning on staying in your home at least another three to five years?
- Do you have a second mortgage or line of credit at a high or adjustable rate?
- Do you want to consolidate some credit cards or car loans to lower your total monthly payments?
- Do you want to do some major home improvements?
After reviewing this, call me and we can get together to go over your situation and see what makes sense for you.
Call Theresa Springer (MLO #70667/NMLS #70667) today at 360-798-4161 to see the difference that working with an experienced home loan professional can make for you.
Word on the Street...
"I was beginning to lose hope on this loan project until Theresa became involved. More importantly, I knew my client was in good hands with her! Thank you Theresa!" -- Sherrie Kaiser Goff, Attorney
Testimonials appearing on this site are individual experiences from those who have worked with Theresa Springer. They are individual results and results may vary.