If the economy or a bad experience has kept you from refinancing, you should consider doing it now. This past year, you've probably heard a lot of talk about mortgage refinancing, such as historically low rates, value lower so it's a great time to buy your first home or upgrade to your dream home, get on top of their finances with a lower monthly payments or a shorter term to payoff the loan faster with less interest.

Maybe you haven't explored refinance because the economy has kept you in a financial holding pattern. Perhaps you didn't feel that it was smart to spend savings on closing costs. Whatever the reason, the time to act is now. There are many programs to choose from, Conventional, FHA, VA, FHA $100 down, alt-a, and streamlines, high ltv's with no monthly mortgage insurance, USDA streamlines and purchases with no money down. The economy is starting to pick up and these low rates will not stay around forever.

Here are some questions to ask yourself:

Why should I refinance now, here are some reasons?

Changing your adjustable rate to a new low fixed in rate: You may have chosen an adjustable rate mortgage to take advantage of ultra low rates, but once rates start to climb you could end up paying the ceiling rate which could be 10-12%. By refinancing today, you may be able to obtain a new loan with a fixed rate mortgage and not have to deal with the stress of a variable rate on your biggest bill per month.

Changing the term of the loan and getting a lower rate: You may want to change your loan from a 30 to a 20 or 15 year, maybe a 20 to a 15 or 10. . You'll pay a higher mortgage payment per month, but your interest will be substantially less and you will own your home free and clear must faster and save thousands over the course of the loan.

Is a refinance worth it?

The most basic calculation is to figure out your breakeven period. This is basically how long it will take to "break even" considering the monthly savings vs. the costs of the refinance. The main question is the savings will always be there but how long is your goal to stay in that home. To figure out your breakeven period, divide your closing costs by the amount that you are saving each month. If not, then we would not put you in a loan that does not benefit your goals. You have to look at the overall savings when also comparing the program and term.

Can I deal with this not being a quick process?

Many hopeful homeowners go into a refinance thinking that everything will be settled after a few phone calls. Sadly, this is not usually the case. Processing times are longer today for a number of reasons, including regulatory changes and historically low rates. Depends on the loan program you can get qualified for. Banks guidelines are tight, volume of loans are picking up, lots of red tape. That is what we are here to deal with on your behalf.

Hopefully these four questions have helped you to start thinking about whether or not a refinance is worth it for you. If it is something that you are interested in, call me today @ 614.442.9900. Otherwise, you'll be kicking yourself in a few months or a year when these low rates are not so low anymore.

Apply online and we will contact you to go over details on what your needs are and what we can do to meet those needs. There have been many different program changes in the past few months.

Stephen

Loan Officer

NMLS# 3888

Emery Federal

(p) 614.442.9900