Save Big with a Refinance This Spring
Interest Rates the Lowest in Over a Year
Even if you have a good rate on your current 30-year mortgage, this month’s low rates might mean that a refinance could save you serious money. Current rates for a 15 year fixed rate mortgage are hovering around 3.5% (3.63 APR)*, and 30 year rates are around 4.00% (4.13% APR)* With these low rates, it may make sense to:
1. Reduce Your Mortgage Term
Moving from a 30 year to a 15 year mortgage at rates as low as 3.5% can offer significant benefits. If you can afford a higher monthly payment, you will:
- Pay off your mortgage faster
- Pay tens of thousands of dollars less interest over the life of your loan – not only is your rate lower, you will pay interest over a much shorter period.
- Build equity faster
2. Take Cash Out of Your Home Equity
If your home has appreciated in value, or if you have been paying your mortgage for a substantial period of time, you have probably built some equity. With mortgage rates at a low point, you can convert some of that equity into cash that you can use to:
- Update, renovate, or repair your home
- Make a down-payment on a rental property or second home
- Pay for college tuition
- Pay off higher-rate debt
- Make a purchase or investment you’ve been dreaming of
In most cases, you can refinance with little or no cash out of pocket. We even offer loans with no closing costs.
If you are interested in learning more, we’d be happy to put together a worksheet for you that will show you exactly what your costs would be and how much you can save. There is no cost and no obligation.