With mortgage rates approaching a two-year low, many Americans are “in the money” to refinance and save thousands of dollars.
1% Lower Interest Rate Saves Thousands
It’s amazing the amount of money you can save by just lowering your mortgage rate by 1%.
Take a look at this infographic by Zillow that shows the savings resulting from lowering your mortgage rate by 1%.
In the Zillow example on a $300,000 home, lowering the mortgage rate 1% saved enough in 15 years to pay cash for a new car, or make a 20% down payment on a $264,000 vacation home in 30 years.
Low interest rates also present a great opportunity for homeowners to take cash out of their home for various purposes, including making investments, purchasing a second home, paying off high-interest debts, financing home improvements, and paying for college.
Cash-out refinancing allows a homeowner to refinance at a lower rate and term, while also taking equity from the home in the form of cash.
To get an idea of the amount of cash you could get from cash-out refinancing, determine how much equity you have in your property (difference between your property value and the outstanding mortgage principal). Keep in mind that most lenders will not allow you to access all of the equity, so you will need to contact a mortgage loan originator for details.
To learn about recent changes with cash-out refinancing, and help evaluating your options for taking cash from your home, see: Cash-Out Refinancing, Recent Changes, and Evaluating Other Options.
Consumers Believe Mortgage Rates are Going Up
With mortgage rates approaching the lows of May 2013 , 93% of U.S. consumers think rates have stopped dropping.
Fannie Mae’s surveyed 1,000 households mixed between homeowners and renters, and only 7% of the people polled believe mortgage rates will continue to drop.
“In The Money”
Many homeowners are “in the money”, meaning they could refinance their homes and save thousands of dollars. And as a result, Marimark Mortgage is helping a lot of customers refinance to lower rates and save money.
If you’re not sure whether you could save money by refinancing, or if you would like to start the refinance process, please contact us via phone or email. And when you get a chance, please take a moment to read our testimonials from homeowners.