Mortgage and Home Refinance Options
The mortgage melt-down of late has made it fairly difficult to obtain a mortgage loan. Below we have a couple great options and working on adding more.
Tip when thinking about refinancing:
If you are thinking about refinancing your loan, make sure it makes financial sense. For example if you have a loan for $100k over a 30 year term at 5.9%, monthly payment of $593.14 and you've paid on it for 7 years, refinancing it at 5% for 30 years may not make financial sense in the big picture, especially if there is closing costs and/or points in the refinance deal. Here's a break down:
You now have 23 years remaining, if you refinance your balance of $89,325.24 for 30 years at 5%, your new payment would be $479.52. A savings of over a $100 a month - but wait, it's not as good as you think...
So to compare between 23 years with the 593.14 payment and the new 30 year term at 479.52 here is the breakdown:
* 276 months x 593.12 monthly payment= $163,706.64
* 30 years x 12 months= 360 months
* 360 months x 479.52 monthly payment= $172,627.20
So in the above example you will lose: $8,920.56 by refinancing and that doesn't include any closing costs or points. It is fair to mention in some circumstances refinancing does make sense, especially if you are maxed out with your monthly payment and could really use the $100 a month savings. In any case, take your time and consider all factors before just looking at the cheaper monthly payment. In a best case scenario, refinance with no closing costs or points - or at least minimal fees. Refinance for the term remaining on your current loan. In the example above this would mean refinancing at 5% over 23 years. By doing that, you would save about $50 a month.
Mortgage & Refinancing Offers: