February 15th, 2011 11:04 AM by BILL WILBANKS
Let's take a different look at a few opportunities left to the refinance borrower. First, many folks have been able to take advantage of historically low refinance rates in the past 2-4 years and quite a few more than once as rates plummeted over the last two years ever lower. Thirty year rates are still very low.
What now you may ask for those that for one reason or another never caught the train? This may be your last opportunity to take full advantage of reducing both your rate and your loan term.
REDUCE THE TERM OF YOUR MORTGAGE
Take a look at a recent quote. Have you overlooked something?:
Current P&I Pmt
New P&I Payment
Total Pay Back
$193,000 existing loan balance
266 pmts left
360mo Libor 5/1 ARM
360mo Fixed 30 yr
Same plus cost rolled in
240mo Fixed 20 yr
180mo Fixed 15 yr
So whether you want to lower your payment now with the five years fixed payments on the ARM and really save like the over $20,000 as in the example above in the next 60 months minus closing costs, prefer the standard more conservative 30 year fixed to lower your payment or you simply want to reduce the amount of your current loan repayment later with products like the 15 or 20 year fixed...you have very viable options.
We'd love to help you review your detailed options. Let's see if it can work for you. Call me today. A shot at saving thousands vs. doing nothing on your current loan has to be worth a few minutes of your time. It's a Win/Win for you. It costs you nothing to have a mortgage professional analyze your data and you could end up saving big money at the end of the effort. Why not?