Rates are still at ALL TIME LOWS!
Let’s say you bought your home back in the olden days — like, 2010 — and locked in the average interest rate at the time of 5% – how much could you save on a monthly basis now, by refinancing and taking advantage of today’s epically low rates?
Let’s have a look.
Hypothetically speaking, let’s say you bought a $300,000 home back in 2010. You put down 20% — so you borrowed a total of $240,000 — and you got a just-fine interest rate at the time of 5%. Your monthly principal and interest payment would be about $1,288/month. Okay, not terrible. But what if you decided, “Hey, 60-year lows might not make it to 61-year lows, so perhaps I should go ahead and refi… before it’s too late.” So, 10 years later in 2020, you have a balance of about $184,000 on that loan. You lock in a rate of 2.5% and now, you’re paying $727/month in principal and interest. That’s $561/month savings.
THAT’S AN EXPENSIVE CAR PAYMENT!
THAT’S 140 CUPS OF OVERPRICED COFFEE!
THAT’S 10 MANI / PEDIS A MONTH! …not that you need 10 mani/pedis a month, but you get the idea.
Keep in mind term length and closing costs, and that by refinancing your existing loan, your total finance charges may be higher over the life of the loan. But if saving a few hundred a month is worth it to you, then jump on it.
We don’t know how long these rates will last. But we do know that they won’t stay this low forever. Go ahead and give us a call. Your Homespire Loan Officer can give you a good idea of how much you can save with a refi today.
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