Time to Refinance?

With mortgage interest rates stumbling and slipping a bit, lots of home owners are scrambling too refinance.  Current rates are so attractive, we are in a bit of refi-frenzy.  In fact, the number of mortgage applications nationwide rose 8.2% last week over the week before.  64.3% of those applications were for refinance purposes, up more than 3% from the week before.

The reason for this increased activity is a bit of a hiccough in interest rates.  All of the experts expected rates to rise slowly this year – and most still insist they will – but here in March we have a dip.  Today’s 30 year fixed rate is in the neighborhood of 3.8% and for a 15 year mortgage it’s just 3.1%.

Assume you have a $500,000 30 year mortgage at 4.25%.  Your principal and interest payment would be about $2,460.  Refinancing at 3.8% would reduce your payment by $130 a month, to $2,330.  And, if you wanted to be bold and jump over to a 15 year mortgage, your new payment at 3.1% would be $3,477.  I know $1,000 a month more looks like a lot but you’d be building equity much faster, your house would be paid off in 2031 instead of 2046, and you’d be saving about $250,000 in mortgage interest over the life of the loan.

My point is, if your current mortgage interest rate is more than 4%, this is an excellent time to take a look at refinancing.  It may be right for you, and maybe not.  The only way to know is to talk with someone who can give you the figures, the savings, the pros and cons.  Of course, the best way to find an expert is to contact the professionals at Help-U-Sell Honolulu Properties.  We’ve been helping Oahu homeowners build wealth and maximize their housing investments for decades!

Help-U-Sell Honolulu Properties is a full service real estate company that provides exceptional service while charging less than ordinary Realtors.  We’ve been successfully helping buyers and sellers all over Oahu for more than 12 years and we’d be delighted to help you achieve your housing dreams.  Contact us at (808) 593-8811, or visit our website.  

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