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Each and everyday I see advertisements on the television or hear advertisements on the radio, touting the low great rates out in the marketplace. These rates are for not only the purchase of a new home but also for those who refinance their current mortgages. So are these rates too good to be true? Are these rates available to you?
The first thing to know is that there are mortgage programs out there in the marketplace that indeed have very low interest rates. I have mortgage investors that have programs with rates as low as 3 percent. I have mortgage investors that allow the borrower to pay only the interest and absolutely no principal, these programs and rates are legitimate. But, and there always is a But, the rates and programs with these low rates may not be close to being the best mortgage fit for all borrowers. If you are looking to refinance you should have the answers to the following questions before you choose a mortgage program.
The number one question is how long you plan to stay in that property. If you plan to stay for an extended period such as 10 plus years, you may want to consider longer-term mortgages. If you think that the property will be your home for only a year or two before you sell it and move on, a short-term mortgage may be a better choice for you.
The next question to ask yourself is do you plan to pay off the mortgage in a short period of time. If you plan to pay off the mortgage in five years and you lock yourself into a 30-year fixed rate mortgage you may have just unnecessarily spent a couple of thousand dollars in a higher interest rate for a long term mortgage.
The next question to ask yourself is a question concerning your discipline. Do you have the discipline to continue to accelerate the payment even if you have an income dip for a month or two?
So, if you have answers to those questions then you need to ask if the market is right for you to refinance your current mortgage. Is the market right for you to consolidate your debt by using the equity in your home?
Current mortgage rates are still low if you compare them to a 10- or 20-year average. Knowing how long you plan to own the mortgage may be the key to determining if a refinance is right. If you have an adjustable rate mortgage and you have decided to stay put for 30 years, a fixed rate mortgage may be worth considering.
If you have decided that you will move on to another property or locale in the not too distance future, an adjustable rate mortgage may be the option to seriously consider.
The bottom line is that you need to have a few answers to determine if it is cost effective to refinance your mortgage and/or current debt. I recommend that you call me or your friendly neighborhood mortgage lender today to set up an appointment and evaluate your options.
For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at robertk@mymillenniumbank.com. Bob is a local mortgage lender with Millennium Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal Housing Lender. NMLS Bank #477710 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Millennium Bank.
The first thing to know is that there are mortgage programs out there in the marketplace that indeed have very low interest rates. I have mortgage investors that have programs with rates as low as 3 percent. I have mortgage investors that allow the borrower to pay only the interest and absolutely no principal, these programs and rates are legitimate. But, and there always is a But, the rates and programs with these low rates may not be close to being the best mortgage fit for all borrowers. If you are looking to refinance you should have the answers to the following questions before you choose a mortgage program.
The number one question is how long you plan to stay in that property. If you plan to stay for an extended period such as 10 plus years, you may want to consider longer-term mortgages. If you think that the property will be your home for only a year or two before you sell it and move on, a short-term mortgage may be a better choice for you.
The next question to ask yourself is do you plan to pay off the mortgage in a short period of time. If you plan to pay off the mortgage in five years and you lock yourself into a 30-year fixed rate mortgage you may have just unnecessarily spent a couple of thousand dollars in a higher interest rate for a long term mortgage.
The next question to ask yourself is a question concerning your discipline. Do you have the discipline to continue to accelerate the payment even if you have an income dip for a month or two?
So, if you have answers to those questions then you need to ask if the market is right for you to refinance your current mortgage. Is the market right for you to consolidate your debt by using the equity in your home?
Current mortgage rates are still low if you compare them to a 10- or 20-year average. Knowing how long you plan to own the mortgage may be the key to determining if a refinance is right. If you have an adjustable rate mortgage and you have decided to stay put for 30 years, a fixed rate mortgage may be worth considering.
If you have decided that you will move on to another property or locale in the not too distance future, an adjustable rate mortgage may be the option to seriously consider.
The bottom line is that you need to have a few answers to determine if it is cost effective to refinance your mortgage and/or current debt. I recommend that you call me or your friendly neighborhood mortgage lender today to set up an appointment and evaluate your options.
For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at robertk@mymillenniumbank.com. Bob is a local mortgage lender with Millennium Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal Housing Lender. NMLS Bank #477710 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Millennium Bank.
