If you have been paying attention to the news recently, you may have heard that mortgage rates continue to be amazingly low. These low rates create an excellent opportunity for many homeowners to refinance their current mortgage. Unfortunately, some homeowners receive unhelpful advice from their current lender or loan servicer. For example, they may advise you to keep the low rate that you already have on your current mortgage. The reality is that refinancing is not in the best interest of every homeowner, but you should not base your decision solely on the advice of the company that you currently make payments to.
Mortgage interest rates have dropped considerably over the last several years. Many homeowners today either purchased their home or refinanced their loan at a time when rates were between 3 to 5 percent. While few will argue against the fact that these rates on a home mortgage are exceptional, tremendous savings may be available to those who can move from a 3.5 percent rate to a 2.75 percent rate, for example. This holds true regardless of how recently you locked in that higher interest rate.
Keep in mind that lenders and loan servicers have their best interests in mind. They make money by keeping you in your current loan. While you cannot always take the advice of your current lender, you also cannot take the word of another lender or mortgage broker. How can you determine if refinancing is right for you at this time? Contact a different lender to get a quote. By doing so, you can learn definitively what the other financing options are. Through a review of different quotes, you can compare:
- The difference that a refinance may make to your monthly mortgage payment
- Your accumulation of equity in the years ahead
- Your loan payoff date
At MortgageDepot, we want to help you decide if refinancing is the right move for you at this time. Contact us today to explore new mortgage terms that you qualify for.
Contact one of our loan consultants to learn more about this program.
Have questions or need help?
Call us now at 800-220-LOAN
Request a call back or email us your questions!
