Wonder if refinancing again makes sense if you’ve closed on your most recent loan as recently as 9 months ago? The answer may surprise you. Depending on your situation, you could shorten the term of your mortgage, or enjoy more cash in your pocket every month! Here is an example of a situation where it would make sense:
| Balance | Principle and Interest | |
| Current | $250,000.00 | $1,380.51 |
| Proposed | $250,000.00 | $1,279.53 |
In this case, we were able to lower the borrower's rate by three quarters of a percent. With the drop in rate, this borrower could save $100.98 per month, which is great as it is, but there is another option: Get a lower rate, but make the same payments. Why? If this borrower continues to make the same payment she makes every month, that $100.98 goes directly towards the balance of the loan. She’d be done with the mortgage more than 4 years ahead of schedule, and over that time, she’d save more than $26,000!
That’s great if she is planning on staying in her house for awhile. What if she plans on moving in the next 5 years? MBA has some programs that can eliminate closing costs, so the savings of the lower rate start on the first month!
Whether you plan on staying in your current home for the long term, or have plans to sell in the next few years, we’d be happy to go over your options with you. Give us a call today to see what we can do!
*note that rates change every day--these rates are approximately what we see in the market, but are used here for illustrative purposes only.
MBA Mortgage Corporation - 140 Wood Road Suite 100 - Braintree, MA 02184
Phone: (781) 849-1118 Toll Free: (877) 574-0777 Fax: (781) 849-1144
website: www.mbamortgageco.com
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