Homeowners who have recently refinanced will save a combined total of $5 billion in interest.
Freddie Mac has released its 2014 data on refinance loans and it appears that the market has taken an upswing. In the next few years, homeowners who refinanced in 2014 are going to save a combined total of $5 billion in interest. By cutting mortgage rates by almost a 1/4th, borrowers are able to save a substantial amount of money both monthly and over the life of the loan. If you are thinking about a refinance right now consider the following.
Benefits to Refinancing Right Now
• Interest rates are still at an all-time low, meaning you can get the same benefits in savings that borrowers got in 2014. Check today’s mortgage rates and if your current rate is higher than that then a refinance may give you significant savings.
• If you are concerned about extending the terms of your home loan with a refinance you can ask Better Rate Mortgage about a 15-year fixed rate loan. The combined low interest rate with shorter loan terms can give you a considerable savings.
• The reduction in personal mortgage insurance (PMI) rates also applies for a refinance loan. If you are concerned that you will not have enough equity in your home to avoid PMI, know that PMI rates were recently reduced. With this reduction, homeowners who have not yet built sufficient equity in their house will save thousands of dollars in fees.
• If you are at that financial turning point when kids are looking into college, refinancing now to help pay the tuition is a money saving option. Student loan interest rates are rising, and even government subsidized loans can be over 6% APR. This may be double what you will pay in interest when you refinance your home. If you have built in equity in your home, using it to help fund college is now a viable option.
• This is also a great opportunity to increase the value of your home with a remodel project. If you refinance and use some of the money towards updating a kitchen for example, you are increasing your home’s value. Additions, new kitchens, and new baths are all upgrades which will give you an excellent return on your investment when it comes time to sell your home. If you refinance and remodel now at these low rates, that return will be even higher.
What About the Closing Costs For Refinancing?
While you are responsible for certain closing costs when refinancing, with interest rates this low the benefit far outweighs the cost. Your closing costs may quickly be recouped in the savings you see on your monthly mortgage statement. If you have questions about refinancing and whether it is right for you, Better Rate Mortgage will help you. Call us today at (314) 361-9979 to make sure that you are benefiting from the maximum savings possible!
