The best time to refinance is when rates are low. Homes purchased in the late 1980s to the early 1980s had mortgage rates around 10 to 14 percent. One of the highest years for mortgage rates was 1981, at more than 16 percent.
As a homeowner with a mortgage, it pays to keep an eye out on mortgage rates. Current fixed-rate mortgages are less than three percent. A half of a percent difference can lower your monthly payments and overall interest costs.
If you bought your home at a high rate, a new lower rate could save you tens of thousands of dollars.
On a $300,000 loan, a one percent difference can save you more than $20,000 over 10 years.
If you have a Federal Housing Administration (FHA) loan, you may be able to quickly and easily refinance your mortgage. The FHA Streamline refinance process is simple and fast because there is no need for:
- An appraisal of the home.
- Job or income verification requirements.
- A credit check.
Appraisals can cost $400 to $750, depending on where you live. While you will still need to pay other refinancing fees, this savings is one of the biggest expenses in the process. If you can save one percent or more, the refinancing costs are typically worth it.
With the FHA Streamline refinance process, you can get historically low rates. Your lender may also refund a portion of your private mortgage insurance premium payments after closing your refinance loan if you are within three years of when you first obtain your original FHA loan.
By Admin –