Owning a home is the quintessential American dream, one that many people have successfully completed. There is one thing that many homeowners have not completed and that is researching the mortgage rates. The rates I am speaking of could have been either when they bought their home initially or after having lived in the home for some time. While there is nothing that can be done about original home mortgage mistakes that many homeowners had made, something can certainly be done now and currently it is a great time to refinance a home mortgage.
According to an article from CNNMoney.com published in November of 2010, 38% of all mortgages (both fixed and ARM) pay between 5-5.99% interest and 28% pay 6-6.99% in interest (America's real mortgage rate, 2010). With the total number of mortgages totaling well over 50% that are paying over 5% in interest rates it is fairly obvious that many homeowners are not utilizing home mortgage services to refinance their existing mortga ges which would save thousands of dollars across the life of a mortgage. Rates are well below 5% in many cases, especially when looking at 15 year fixed rate mortgages.
The interest rates that are currently available would seem enough to grab the attention of any homeowners currently paying over 5%, but there is another good reason to find a good home mortgage service to refinance. The money saved over the life of a loan can be dramatic by simply refinancing a mortgage to a lower rate. For example, a $270,000, 30 year loan taken out at an interest rate of 5.9% refinanced into a fixed rate of 3.8% will save $147,000 in interest over the life of the loan (Max, 2010). This incredible amount of savings should be attracting multitudes of homeowners but as the statistics show, this is not happening.
Any homeowner can see by the two simple facts that have been presented, that this is definitely the time to refinance for more than one reason. A homeowner will not only lo wer their interest rate but at the same time they will realize signif icant savings over the life of their mortgage. Doing this also leads to other benefits. A homeowner will have shorter loan terms if they are able to afford the extra principal payment involved going from a 30 year mortgage to a 15 year. If this is not feasible, staying at a 30 year mortgage will free up hard earned money that many families can ill afford to spend during these rough times. So yes, now is a great time to refinance!
Works Cited America's real mortgage rate. (2010, November 12). Retrieved July 10, 2011, from cnnmoney.com: http://finance.fortune.cnn.com/2010/11/12/americas-real-mortgage-rate/ Max, S. (2010, November 2). 3 ways low mortgage rates can work for you. Retrieved July 10, 2011, from money.cnn.com: http://money.cnn.co m/2010/11/02/real_estate/make_low_rates_work.moneymag/index.htm
Author: Donnie Foray
Website: http://www.eMortgageLouisville.com
About the Author:
Donnie Foray invites you to visit http://www.eMortgageLouisville.com. You will find many tools on this site that will assist you with many of your mortgage needs and questions. You will find that the mortgage professionals at eMortgageLouisville strive to provide you with the best home mortgage services possible. Please feel free to call us or email us with any questions that you may have. All of our contact information is listed on the website above.
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