As interest rates drop and home values go up, many people are taking advantage of refinancing their mortgage into a lower-rate and/or shorter-term mortgage. This is a great way to save money, both short term and long term, on your mortgage. There is no magical amount you must lower your rate to make this worthwhile. The key to doing a rate and term refinance is to lower your monthly payments or shorten your home loan term in a way that benefits you. There are many uninformed people who say you must save more than 1% on your rate to make this worth doing, but this is just not true. Each loan amount is different, and the size of the loan and cost of the refinance is more important than the fixed percentage rate reduction. Your individual needs matter more than a fixed percentage bankers used 40 years ago.
Some homeowners are looking at pulling out cash from their home’s equity. We have several options for this, including our New Home Equity Loan Product. Many of my recent buyers are taking advantage of the super low interest rates to lower their mortgage payments, then doing a Home Equity Line of Credit to take out the cash they need to do home improvements, pay off credit card debt, and much more! Call me today, and let’s talk about how we can get you to where you want to be with your home loan and equity.