Hello Kathleen, Shoshana, Cat, Melissa, Colin, Lisa & Mike -
Email not displaying correctly?
View it in your browser .
Kathleen, Shoshana, Cat, Melissa, Colin, Lisa & Mike      The Goneau Group
Kathleen, Shoshana, Cat, Melissa, Colin, & Lisa
REALTORĀ®
Real Estate Consultants
Keller Williams Realty
(508) 251-2558
1084 Main Street Bolton, MA 01740
Friend Me on Facebook
Follow Me on Twitter
Connect with me on LinkedIn
Our Website Home Search Featured Listings Check Out Our Instagram Contact Me
Share Save

5 Signs That It's Time to Refinance Your Mortgage

 

Have you been giving some thought to how you might be able to save money if you refinanced your mortgage? How do you decide if it's really worth it? Here are 5 signs that you might want to sit down with a banker and explore refinancing seriously. 

  1. Interest rates are moving. If your mortgage has an interest rate that is several years old, it might be time to refinance. Mortgage interest rates fluctuate. If the Federal Reserve Bank raises interest rates, mortgage rates will likely follow.
  1. You have substantial equity in your home. Equity in your home can be accumulated by your monthly payments or by the value of your home increasing. Either way, it's good news. You can ditch PMI (private mortgage insurance) when your home reaches its 80% loan-to-value ratio. A lower loan amount likely translates to a lower interest rate, saving you money on your payments.
  1. There is a positive change to your credit score. Bank loans often involve a cargo-shipload of paperwork, including your credit history. You may not have realized it at the time, but the interest rate on your conventional loan was based on your credit score at the time of application. A current, higher score usually translates to a better interest rate.
  1. Your income increases. The promotion comes through. A major client signs the contract. Your book was sold to a publisher. These are all good things that relate to more money in your pocket. Take that to the bank, literally. Secure a better interest rate based on your increased ability to repay the bank loan. Or you could refinance a 30-year fixed-rate loan to a 15-year one and increase your equity.
  1. Your relationship status has changed. Breaking up is hard to do. Throw real estate into the mix and things get complicated. Division of the assets usually includes the residence and that means each party's share of said assets. Refinancing the home is one way of "buying out" the other party involved.

Know Your Options

Once you've decided to explore financing, think about the kind of mortgage you want. You'll have a lot of choices. Below are some terms you should know in order to make a choice that's right for you:

Jumbo Loans: Mortgage amounts greater than $453,100 are in most cases considered jumbo loans. (This limit is higher in certain areas.) These types of loans mean more money is doled out by the bank and consequently they're riskier for the lender. Banks mitigate their risk by charging higher interest rates to borrowers.

Conforming Loans: Typically, a loan amount of $453,100 or less is called a "conforming loan" because it adheres to guidelines set by Fannie Mae and Freddie Mac, buyers of secondary mortgages. Banks will typically sell qualifying loans to these government-sponsored entities to free up cash.

Conventional Loans: Any mortgage issued by a lender, but not backed by the federal government. Both conforming and jumbo loans fall into this category, but only conforming loans sell on the secondary market.

Let's talk about how refinancing can help you get a better rate, or move you closer to your financial goals.

 
Share Save

Your Comments

Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © HomeActions, LLC All rights reserved.

This email was sent to: kgoneau@kw.com

Mailing address: 1084 Main Street, Bolton, MA 01740