You have been in your beautiful North Barrington home for a number of years now, and you have been reading that mortgage interest rates are practically at an all time low. Is it time to refinance your home?
To answer that question, you’ll have to, as they say in the vernacular, “crunch some numbers”. It may seem like a daunting task, but it is doable if you are determined, patient, and thorough. You should carefully read your present mortgage, and the terms, fees, and other particulars, first. From your present payment, subtract the amounts you pay in escrow for property taxes and insurance. These will be virtually the same anyway.
Next, begin to research the current rates on mortgages, starting with your present lender, and branching out to other lenders in the area. The experts recommend shopping around, even if you expect to refinance with your current lender. Chances are, if you find a better deal, they may match it to keep your business. Don’t forget that your real estate agent can be a valuable source of information and advice in this area, as well as knowing and having contacts with the lenders themselves.
Your decision on whether or not to refinance may depend on the kind of loan you have now. If you have a fixed rate that is considerably above the going rate now, you can probably save money. However, obtain and use a calculator and an amortization chart, and check carefully with the lender about fees, prepayment terms, and such, and compare these with the terms and flexibility of your present mortgage agreement.
You may have an adjustable rate mortgage, in which case, your rates are probably still lower at this point. If, however, the projected improvement in the economy comes to fruition, you could see your rates rising very soon, so you may want to get a fixed rate mortgage while they are still low.
Another variable in the equation can be the number of loans you have. If you have a second property on which you are paying, you may want to check into the possibility of combining them into one loan at the new lower rates. This can save you a considerable amount.
Being approved for refinancing isn’t usually a problem. For one thing, if you’ve been paying on a loan, the principal (the amount you originally borrowed) has, through your payments, been reduced. Of course, this is assuming you have been paying steadily, and on time.
Besides refinancing, the lower rates make this a good time to buy a home. If you are interested in purchasing a home in the Barrington area, or in listing a property for sale, please call me, Dean Tubekis, at (874) 809-8070. We are located at 530 N. Hough St., Barrington, IL, 60010. Have a look at my website, or follow/like me on Facebook, Twitter, and Pinterest. I can help you with all of your real estate needs!
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