Tuesday, May 23, 2017
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Tom Gilliam
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Inside This Edition
Top Two Reasons To Refresh Your Mortgage
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Fact Vs. Fiction For Successful Home Buying And Selling
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Equity Can Turn Home Improvement Dreams Into Reality
Read More >
Dig A Little Deeper In The Neighborhood
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How Your Home's Equity Can Make Your Retirement A Happy One
Read More >
Before You List, Fix It Up
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Monthly Newsletter For Homeowners
e-HomeNews for March, 2017
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Top Two Reasons To Refresh Your Mortgage


Spring is just around the corner. And as the warmer weather arrives, you might be planning some intensive spring cleaning.

But don't stop with just the interior and exterior of your home. Your mortgage loan could use some spring cleaning of its own.

You might not think much about your home loan. But by giving your mortgage a spring review, you could save hundreds of dollars a month. You might even be able to reduce the amount of interest you'll pay on your loan.

Here, then, are two big spring-cleaning strategies for your home loan.

1. Consider a refinance to a lower rate: How high is the interest rate attached to your mortgage? If you think it's too high, give us a call. We'd be happy to help you determine whether a refinance to a loan with a lower interest rate makes financial sense.

By lowering your interest rate, you can shave significant dollars off your loan payment every month. The key is to determine whether the monthly savings are large enough to justify the cost of a refinance.

Consider this example: Say you have been paying off a $200,000 30-year fixed-rate loan with an interest rate of 6%. Your monthly mortgage payment, not including taxes and insurance, would be about $1,199.

Now say that you've paid that loan down to $180,000. If you refinance that loan amount to a 30-year fixed-rate loan with an interest rate of 4.7%, you'll pay about $933 a month. That's a huge savings of about $266 a month or $3,192 a year. That's significant.

Of course, a smaller drop in interest rates won't provide such a big shot of savings. That's why it's so important to discuss your refinance options with us first.

2. Or how about refinancing to a shorter term? You might also choose to refinance to a mortgage loan with a shorter term for your mortgage spring cleaning. This will leave you with a higher monthly payment, but the big advantage is that it will also save you thousands of dollars in interest, depending on how long you keep your mortgage loan.

Consider this example: If you are paying a 30-year fixed-rate mortgage loan of $180,000 with an interest rate of 4.25%, you'll pay a total of about $855 every month, not including insurance and taxes. But you'll also pay about $138,000 in interest if you take the full 30 years to pay off your mortgage.

Say you now owe $165,000 on that loan. If you refinance to a 15-year fixed-rate mortgage with an interest rate of 3.25%, your monthly payment will jump to about $1,159, not including insurance and taxes. But the interest you'll pay if you take the full 15 years to pay off your loan will only be about $43,000.

These are big financial decisions. So while you're giving your home that needed cleaning this spring, call us, too. We consider ourselves the spring cleaning experts when it comes to dusting off that mortgage loan of yours.

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