refinancing – Cooper Realty Associates

Reasons to Consider Refinancing

With interest rates still low and likely to rise this year, now is a good time to refinance if you bought your home more than a couple of years ago. Keep in mind, however, that most institutions have stringent refinancing criteria, so it may not be worth it unless you can refinance for a full 0.5% less than your current interest rate. Refinancing your mortgage at the same terms you have currently but with a lower interest rate (ideally 0.5-1% lower) will not only lower your monthly payment immediately, saving a bundle in interest in the long run. Another great refinancing option if you can afford a little bit of a higher monthly payment is to refinance from a 30-year loan to a 15-year loan. Although this means paying a few hundred dollars more each month for the duration of the loa5n, it can save a huge amount of interest over the life of your loan. Of course, refinancing is not a great option if you are not planning to stay in your current home longer than it would take you to recoup the cost of the loan, otherwise it can be a great money saving option both immediately and for the long-term.

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.

Tips for Refinancing

With mortgage interest rates remaining so low, you may be considering refinancing. But keep in mind that refinancing is not for everyone. To figure out if it is right for you, begin by figuring out how long it will take you to recoup your closing costs if you refinance at a lower rate. If you can cut your interest by a significant amount, say a point or maybe even half a point, it might be worth it, but keep in mind that a new mortgage is going to carry thousands of dollars in closing costs, so even if what you’re paying monthly is lower, it will take time to break even. If you decide to go for it, be sure to shop around just as you would if you were in the market for a new mortgage. Rates can vary significantly from lender to lender, as do fees and customer service, so do research and find a lender you trust. Once you find a lender with the rate that you want, be sure to lock it in and hold them accountable to close your deal before the lock expires. Most locks last for 60 days. Finally, understand that although many lenders are advertising no or low closing-cost loans, all loans come with a price. Even if your lender is not charging you when you close the loan, rest assured that you are paying for the fees associated with your loan somehow, whether it is with traditional, up-front costs, rolled into your mortgage balance or in the form of a higher interest rate than you would otherwise receive. Educate yourself and ask your lender to lay out all the different options for you before accepting any offer. And if you do decide to refinance, good luck! Making your way through all the paperwork and documentation that is required can be exhausting, but in the end if you wind up with a significantly lower monthly payment it is worth it!

Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-629-6693.

Refinancing Your Mortgage

With the current low interest rates, there hasn’t been a time in recent history that’s been better for refinancing a mortgage. If you’re thinking of refinancing, consider these tips to help you.

First, determine why you want to refinance. Is your goal to lower your monthly payment by extending your loan back out to thirty years or are you looking to reduce the total amount of interest you will pay over the life of your loan? Are you looking to consolidate debt, or hoping to get in or out of an adjustable-rate mortgage? Whatever your reasons, be sure to pinpoint your goals of refinancing. It’s never a good idea to refinance just because it “seems like a great deal!” After you know why you want to refinance, figure out how many months of paying your new monthly payment it will take before you’ve covered the closing costs of refinancing. If you don’t plan to be in your house long-term, refinancing probably isn’t the right choice. Likewise, if you’ve only been in your house a short time before refinancing, that might not make sense either. One thing to keep in mind, is that even if your interest rate is significantly lower, if you extend the loan terms back out to thirty years you are paying over a longer period of time and therefore it might not save you money in interest over the long run. If you are considering refinancing, the best advice is to understand the terms of your current loan and any refinancing terms you are considering, crunch the numbers, and speak to a trusted advisor about your options. Remember, refinancing can be a great deal, but it isn’t for everyone.