When I should refinance?
That is a Great question! What are your objectives?
- Lower your monthly payments?
- Only Lower your mortgage payment?
- Use your home appreciation to pay off other interest-bearing debt such as a student loan or other?
- Save money by paying down your principle early (reduce your mortgage interest)?
- Payoff your home early?
- Did you know, you don’t necessarily need to refinance to accomplish these goals..?
Here is an example (below) of just first question above-“Lower your monthly Payments”. (source: https://www.nerdwallet.com/blog/average-credit-card-debt-household/)
Current average US household debt by category is:
|
Type of debt |
Average U.S. household carrying this type of debt |
Projected current Rate’s based upon national avg’s. |
Minimum Principal & Interest payments |
Term in Years |
Total Amount Paid |
Monthly Saving from Refinancing at the same rate: |
End of term saving from |
|
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|
Credit cards |
$15,482 |
13.5% |
$464.46 |
15yr |
$83,602.80 |
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|
|
|
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|
Mortgages |
$181,176 |
5.75% (National avg is higher) |
$1,057.26 |
30yr |
$380,624.40 |
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|
|
|
|
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|
Auto loans |
$27,669 |
6.0% |
$443.73 |
7yr |
$37,273.32 |
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|
|
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|
Student loans |
$46,950 |
6.8% |
$325.87 |
25yr |
$97,761.00 |
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|
|
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|
Total |
$271,277 |
$2,291.35 |
|
$599,261.52 |
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Did you know, if you paid off all of the debt list above (total average US household debt by category) and kept the same mortgage rate, your would save more than $700 per month & $29,000+ over the life of all loans combined. However if you also refinancing all of the debt above into a 15yr fixed rate mortgage you would still pay 75$ less per month and save over $200,000 in total!
Bottom line there are a lot of options available to most Homeowners. OPTIOfinancing is built on the motto: YOU Deserve Options! Hence for a no obligation, assessment of how we can help you, give us a call.
We LOVE to give our clients OPTION’s!