For example, from April to July rates have been dropping quite steadily, but for the last several weeks they have leveled out, and don’t seem to be dropping again.  In fact, all signs point to rates going back UP before we see any type of drop again.

What does this mean to you?  It means that if you are on the fence about refinancing your mortgage you should take advantage of these low rates NOW before they go back up.  This is the best we have seen since 1972, and if you don’t feel like waiting another 40 years you should CONTACT US as soon as possible. You can also SEND US AN EMAIL or FILL OUT THIS FORM and we will review your situation.

We can get your loan refinanced faster than you could even imagine. OK maybe not faster than you could even imagine, but I can guarantee you it’s quick.

CONTRIBUTING FACTORS TO HOME SALES

The most obvious answer to this question would be the ever popular $8000 tax credit, which actually expired earlier this year.  Experts agree that this credit pushed first time homebuyers into purchasing a home before the credit was gone.  In order to qualify, buyers had to sign their real estate contracts by April 30 — and they still have to close on their home by the end of this month, June 30th.  So we could still see figures rise as we reach the full expiration of the tax credit.

CONTRIBUTING FACTORS TO LOW INTEREST RATES IN DALLAS-FORT WORTH

Would you believe that the financial status of Europe would have an effect on your interest rate?  Well it does, as surprising as that may seem.  Experts claim that the overall financial ailment in Europe is actually providing unexpected benefits to the United States economy, as foreign investors are putting more of their money into our Treasury Bonds (which are historically a safe haven when it comes to investing).  Long story short, treasury bonds are directly related to mortgage interest rates, and this burgeoning demand has driven up the price of bonds, and inversely, interest rates.

WHAT DOES ALL THIS MEAN FOR YOU?

Overall, this means that if your interest rate is over 6% it might be a good time to refinance your loan and get a lower payment.  This can save you a substantial amount of money over the long run.  The easiest way to find out if a refinance would benefit you is to determine what is known as the “BREAK EVEN POINT.”

HOW TO DETERMINE YOUR BREAK EVEN POINT

The easiest way to find out if you should refinance is to take your closing costs (everything you need to pay to actually do the refinance) and divide it by amount of money you will be saving each month with your new lower payment.  The end result of this will represent the number of months you will need to stay living in your home in order for the refinancing to make sense financially.  If it takes you 5 years to make up the savings, but you don’t plan on living there more than 3, then the refinance doesn’t make sense, and vice-versa!

If you would like us to do a FREE BREAK EVEN ANALYSIS don’t hesitate to CONTACT US and we will get back to you as soon as possible.  You can also fill out our QUICK LOAN APPLICATION FORM and we will review your situation to see if we can help you out.  It’s that easy.

The truth is, few thing in life can compare to the fun filled adventure that is refinancing your mortgage. Wait, what did I just say? That doesn’t seem quite right.

The truth is, dealing with a refinance can be quite the arduous process, and for the most part, it’s not fun at all. This can be attributed to the abundance of paperwork to fill out, the random lender fees, and the sheer fact that most people don’t like modifying their mortgage to begin with.  But there is a reason so many people subject themselves to these hardships, and there are times when refinancing your mortgage is an extremely smart decision that can save you thousands of dollars over the life of your loan.

You may have heard on the news that interest rates have been hovering around historic lows lately, and because of this, thousands of homeowners have refinanced their mortgage in order to cut their monthly payment. You might be wondering how this works.  Basically, by replacing (refinancing) your old mortgage with a new one (that offers a lower interest rate), you can possibly save  hundreds of dollars per month. Imagine if your monthly mortgage went from $1500 a month to $1200. Wouldn’t it be nice?

In fact, lowering your monthly payment may not be the only situation where a refinance would benefit you. You would also want to consider this if the mortgage you are in is (the dreaded) adjustable rate mortgage.  If you find yourself in this situation,  and interest rates are expected to rise, it would be extremely smart to lock yourself in a lower, fixed rate that will keep you sleeping soundly no matter how high rates may sail. And let me tell you, the sky is the limit.

Another reason a person may be interested in refinancing their mortgage is so they can take cash out of the equity they built up over the years. Instead of just refinancing for the amount they currently owe, they may pull out additional funds to use for improvements on their house, starting a new business, or even putting their kids through college.

Of course though, just like everything else, refinancing a mortgage is not free. It would be nice if it was, but that’s just not the case. While you might catch a break and your lender may help out with some of the charges, it is extremely likely that you will still be looking at several thousand dollars in closing costs to pay for a quality refinance. Obviously you must consider these closing costs when deciding whether or not to follow through with the refinance. The trick is figuring out how long it will take before the lower monthly payments make up for the added fees and closing costs. We call this the “break even” point.  Once this point is met, each month afterward you start seeing the extra cash in your pocket.

The biggest thing to consider in regards to this (if you’re doing the refi to save money) is how long you plan on living in the house, and the difference between your old rate and the new one. Long story short, the bigger the difference in rate and the longer you plan on living there, the quicker you start saving moolah!  Wahoo!

To find out if doing a refinance would be cost effective for you, you need to find out what the break even point would be for your mortgage.  To figure this, simply divide the amount of closing costs by the amount of monthly savings.  For example, if you are saving $300 a month, and your closing costs are $5000, just do the math:

$5000 / $300 = 16.67

Meaning that after a year and 4 months (approximately) you would start seeing the savings.  So if you are planning on living in your house longer than this, a refinance would be beneficial to you!

As always, if you have any questions or comments, or if you are interested in a refinance yourself (and you don’t feel like doing any math), don’t hesitate to CONTACT US. We will evaluate your current situation and let you know if a refinance might work!

- Pate

]]> http://www.dfwmortgageguide.com/all-catagories/refinancing-your-mortgage/feed/ 15 http://www.dfwmortgageguide.com/all-catagories/hello-world/ http://www.dfwmortgageguide.com/all-catagories/hello-world/#comments Thu, 11 Jun 2009 03:26:07 +0000 Mortgage Mike - Admin http://www.dfwmortgageguide.com/?p=1

Here at DFW Mortgage Guide we have numerous loan programs that can be custom-built to fit your situation, whatever it may be. We serve the Dallas Fort Worth area metroplex exclusively, so you know you are dealing with a company that knows the area.

We also work with over 20 lenders and have access to almost any loan program available.  These include:

PERMANENT FINANCING MORTGAGES
We offer a multitude of Mortgage programs for Dallas Fort Worth including conventional fixed rate mortgages, FHA Loans, VA, Jumbo, ARM’s, USDA, Interest Only, investment properties, condominiums, and many more!

HOME IMPROVEMENT MORTGAGES
Whether you are looking to purchase a home that needs improvements, or if you need to do some work on your existing house, we have options available for first and second lien home improvement mortgages.

HOME EQUITY MORTGAGES
We offer Cash-Out Mortgages for primary homes, second homes, and investment homes, as well as interest only HELOCs for primary residencies.

SECOND LIEN MORTGAGES
We also offer stand alone second mortgages and second lien mortgages closed concurring with first lien mortgages.

REFINANCE EXISTING MORTGAGES - If your existing mortgage payment is too high, it may be time for you to refinance.  Interest rates are at all time lows right now, and it is worth taking advantage of if you live in Dallas Fort Worth and want to lower your monthly bill!

FURTHERMORE, we strive every single day to be the absolute best mortgage company in Dallas Fort Worth.  We accomplish this by offering competitive costs, while also providing you a level of customer service that is unmatched.  Please call us at 817-527-3164 to prequalify for FREE and we will happily discuss your situation.  Even if you can’t get a home loan right away we will do everything we can to make sure you can get one in the future.

If you are ready to begin your home search, or if you have any questions about financing, don’t hesitate to CONTACT US and we will get back to you as soon as possible!