If you have been thinking of refinancing Now is a great time. If you haven't been thinking about it but have a mortgage on your house now is a good tie to consider it. Mortgages are about as low as they've ever been. I have been suggesting people refinance and look at at 15 year mortgage as opposed to a 30 year. With the lower interest rates the payments could be about the same but a lot more will go towards your principal balance saving a lot of money and paying your house off faster.
Today’s mortgage refinance rates took a sharp dive since yesterday. Average rates for 15-year loans fell to 1.875%, a new 107-day low, while 30-year refinance rates reverted back to the lows recorded in early January. If you’re considering refinancing an existing home, check out what refinance rates look like:
30-year fixed-rate refinance: 2.625%, Down from 2.750%, -0.125
20-year fixed-rate refinance: 2.625%, Unchanging
15-year fixed-rate refinance: 1.875%, Down from 2.125%, -0.250
Rates last updated on January 22, 2021.
Let's look at an example. A sale price of $800,000 is pretty normal in Key West. A standard 80/20 mortgage will give you a loan of $640,000. At a 4% interest rate, which was always considered pretty low, your payments would be $3,055/month for principal and interest. At the current rate of your payment would be $2,451/month which is $604 less per month or $217,440 over a 30 year mortgage period. Pretty good incentive to refinance isn't it? What could you do with an extra $640/month? Add pool? Update your kitchen? Buy a new car? Another great option is keep your payments the same and apply that $640 towards your principal and pay the house off much sooner saving even more money.
Gary
Gary McAdams, PA Realtor and Notary Public
Barbara Anderson Realty
Key West, Florida
