BEST TIMES TO REFINANCE YOUR MORTGAGE

Is It Time To Refinance Your Mortgage?

There are a number of reasons to consider refinancing your mortgage.

If you are eligible for a VA Loan, or even if you currently have one, there may be no better time than the present to investigate refinancing options.

LOW INTEREST RATES

While interest rates are currently at historical lows, the widely held consensus is that the Federal Reserve Board will begin slow, modest periodic rate hikes in the immediate future.

It is a great time to lock in at the current rate before that acceleration begins. Check the existing rate of interest on your mortgage.

It is possible that refinancing now may decrease the interest rate associated with your mortgage. Lowering the interest rate can have dramatic results.

Generally it will decrease the dollar amount of monthly mortgage payments, while also decreasing the overall amount you will pay out during the life of the loan.

Veterans who are eligible for a VA Loan may enjoy some extra perks during refinance.

Closing costs such as a down payment, or fees associated with your refinance, may be lower than those paid on traditional loans.

Your VA specialist will calculate these types of potential costs for you.

FRINGE BENEFITS OF LOW INTEREST RATE REFINANCING

One of the often overlooked benefits of refinancing during periods where fixed rate loans are tied into low interest loans is the ability to reduce the term of the mortgage.

A mortgage loan term is simply the number of years a loan is financed for. A fixed rate loan is a loan whose interest rate is locked in and will never be subject to increase.

It is common to finance a home for periods up to 30 years. Many home owners choose the longest term possible in order to decrease the amount of the monthly payment.

While this is a good option, it is also an option that causes the amount of money paid back throughout the years to be considerably higher than what would be repaid on a shorter term loan.

With interest rates at rock bottom, there may never be a better opportunity to refinance for a shorter term loan.

Because rates are so low, you might be pleasantly surprised at how reasonable monthly payments are on a shorter term mortgage.

The amount of savings on short-term financing can be substantial. Shift those savings over to your retirement fund and create a win-win for the family’s future.

FIXED VS. VARIABLE

In the past it was fairly common to get creative with mortgage financing by tying loans into a variable rate.

Variable rate loan payments fluctuate over time, often increase in a dramatic fashion, and can increase when the Federal funds prime rate rises.

For those with a variable or adjustable rate mortgage, there is no better time than the present to refinance and get locked into a low interest fixed rate mortgage.

Savings on a fixed rate mortgage, particularly at the current low rate, will add up nicely over time.

If you are uncertain about whether or not refinancing is the best option for you, take time to sit down with your VA specialist and discuss your unique situation.

In just a matter of a few minutes you can determine if refinancing is the best financial move for your family’s fiscal health.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com

Jimmy Vercellino, NMLS 184169 Mortgage Originator Specializing in VA

LoansThe views expressed here are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764). Equal Housing Lender.

7702 E. Doubletree Ranch Road, Scottsdale AZ 85258 The views expressed on this site are those of the individual author and do not necessarily represent those of First Choice Bank (NMLS #: 177877) and First Choice Loan Services Inc. (NMLS #: 210764).  Equal Housing Lender.