Most of us are aware that the current interest rates on residential mortgages are at all-time lows. However, there are still many qualified borrowers who have yet to take advantage of these rates to refinance their existing mortgage and derive the benefits from doing so.
While there is much in the press about the difficulty of getting a mortgage refinance it is still very doable and there are mortgage loans being made. There has been, recently, an improvement in the housing market resulting in stabilized to higher values and more realistic appraisals. This provides lenders more comfort in considering refinance requests.
KEY POINT: White Knight Solutions, through Daszkal Bolton, has strategic partnerships that we can put to work for you! We have professionals that can make a complex process easy and facilitate your paperwork.
One should not be hesitant to inquire about a refinance if the interest rate on their loan is higher than current rates or if there is some uncertainty about the value of one’s house relative to the current mortgage. There is even a loan program for borrowers whose mortgage loan balance is greater than the value of the house, that is, an “underwater” situation.
The benefits of a refinance at a lower rate not only includes a lower monthly principal and interest payment, but in many cases because of the low rates, a borrower may be able to refinance into a shorter term mortgage (for example going from a 30 year to 15 or 20 year mortgage) which may result in a new payment that is about the same as the current payment but which pays off the mortgage debt more quickly!
Below is a summary of current rates:
30 year, start as low as 3.375% (3.451% APR)
15 year, start as low as 2.875% (3.012%APR)
10 year, start as low as 2.750% (2.949%APR)
Final rates are subject to market changes and circumstances (such as credit, loan to value, loan size).
Example: Mortgage Loan Refinance
(Estimates) Taken 5 Years Ago Current Balance
Amount $250,000 $230,000
Interest Rate 5.25% 3.375%
Term (Yrs) 30 30
Principal/Interest $1,380 $1,016
Monthly Savings: $364
Annual Savings: $4,368
CONTACT US: If you feel you wish to take advantage of these lower rates, please contact Stephen Barnett, Managing Partner at White Knight Solutions. Steve can be reached at 561-953-1421 or [email protected]. Steve will have our professionals provide an analysis of your particular circumstances, at no cost, to determine if a refinance is possible and also provide an outline of the benefits.