Mortgage Rates Dropped Considerably in January 2016
The chart below shows how the market has moved since April 2015 below. Keep in mind, the chart lines run inversly to rates, so when the lines go up, rates are going down. You will see there was a HUGE change for the better around January to present day. See Below.
Mortgage Refinance – Reasons to Refi
1. Lower your monthly payment
- Obviously, if your current rate is higher than rates currently stand, you could refinance and lower your monthly payment
- If your current loan is a FHA mortgage, and you bought a home previous to January 26th of 2015, FHA mortgage insurance costs have dropped considerably, so you could refinance and save money due to lower rate AND lower mortgage insurance costs
2. Reduce your loan term
- If you currently have a 30yr mortgage, you could refinance to a 20yr or 15yr…many people find that since 15yr rates are so much lower than the 30yr rates, coupled with the recent drop in rates, they can actually lower their term and their payment really doesn’t change much from what they are paying currently.
3. Home values are WAY up, so refi and get rid of costly mortgage insurance
- When you bought your home last year, or anytime in previous to 2015 and you didn’t put 20% down, you might have costly mortgage insurance. If your house, like mine, appreciated like crazy, you could refinance today and get a lower rate possibly, AND get rid of mortgage insurance…for example, we run an appraisal during the refinance and the value comes back high enough that your equity situation is 20% or greater compared to your home’s value, BOOM get rid of the MI. D Magazine posted back in 2013 saying, ” In the first quarter of this year, many North Texas neighborhoods saw double-digit price gains.” This happened during 2013, 2014, and 2015.
4. Reduce your FHA monthly mortgage insurance
- If you bought your home before January 26th of 2015 and used an FHA mortgage, your current mortgage insurance rate is higher than what they are today…FHA reduced the mortgage insurance factor CONSIDERABLY.
If you are interested to see if a refinance is possible, feel free to call my cell at 469 450 2723, or apply online.
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