Thinking of refinancing? Here is what you need to know.

Minneapolis / St Paul, MN:  The economy is doing great, and mortgage interest rates are at, or hovering just slightly above all time lows, which has many people thinking of refinancing.

Most, but not everyone has a great interest rate, but do you know how your current loan compares to today’s market rates?  We have a great market check up tool on our web site where you can plug in your current loan information, and instantly see how you compare. It’s free, and no personal information is needed. 

You can also check current national average mortgage interest rates on our web site, again it is free, with no personal information required.

More than just low interest rates

But refinancing is many times more than just lowering your interest rate. Other important factors to consider when thinking about refinancing your home income:

• Lowering your monthly payment
• Debt consolidation. Using the equity in your home to pay off high interest rate max’d out credit cards with low rate mortgage money.
• Renovations or additions to your home
• Shortening the loan term – For example, go from a 30-yr fixed with 26-year left, to a 15-year fixed. While payments might be a bit higher, the interest savings are amazing.

Does refinancing make sense?

Many factors come into play in deciding if refinancing your home loan makes sense. Sure, lower interest rate are a major consideration, but you also need to look at the big picture. Common items we talk about with clients include:

• Break even period – What are the costs, what are the savings, and will you be in the home long enough for it to make sense. Even if you don’t plan on being in the home a long time, refinancing to a shorter term at a better rate will leave you with a ton more equity faster.
• Stop the bleeding – This one is popular for debt consolidation.  I recently refinanced a client, that by rolling all his credit cards that have gotten out of control into a new 30-year fixed dropped his monthly obligations by $1,400 a month. Wow. Of course he didn’t want to go back to a new 30-year fixed, but the monthly savings was much more important today.
• Buying out others – Unfortunately things don’t always work out for couples. It is very common to need to refinance to remove someone, like a former spouse from the mortgage. The only realistic way to do this is with a refinance.

What makes Cambria Mortgage, the Joe Metzler team uniquely positioned to help me?

Sadly, and unknown to most home owners, is that huge numbers of Loan Officers are unlicensed and simply registered. Many are newer, and simply lack the knowledge and expertise to properly advise a client, and fail to understand the clients wants, need, and goals. Plus many lenders, especially banks and credit unions don’t offer all programs.  We have programs to fit a wide array of customers and situations, including first time home buyers needing down payment assistance, and self employed borrowers needing to qualify based on bank statement deposits, not tax returns.

Every customer is different. We take the time to find out what the best solution and program to fit your end goal. Sometimes that is even advising you to do nothing.

It’s all about the customer, and we’re fortunate to have an experienced and fully licensed Loan Officers to help you out.