REFINANCING MORTGAGES WITH TODAY’S
RATES
Today’s post on refinancing mortgages for Portsmouth NH
Homeowners is written by -
David Linker of Countrywide Bank
Portsmouth, NH
603-334-4616
(direct)
888-231-5004 x 4616 (toll-free)
603-767-2790 (cell)
The lower interest rates that have come with the mortgage meltdown
have created a mini-boom in mortgage refinancing. Mortgage rates are about the
lowest they have been in 5 years. The average 30 year fixed rate has been
hovering around 5.50%. Refinancing a mortgage is currently the most pressing
topic for many homeowners. As rates drop, people want to know what to do and
when.
The old rules of thumb with refinancing have gone out the window. To figure
out whether it is a good idea or not to refinance the mortgage on Portsmouth NH homes or condos, the most
important issue is to determine the break even point with your monthly savings.
The break even point is the time it takes to make up what you spend in fixed
closing costs. So, for example, if by lowing your mortgage by 1% saves you $125
a month, and the fixed closing costs were $1800, your break even point is 14.5
months, or $1800 divided by $125= 14.5 mo to break even.
In this example, if you plan to keep your home for the next 14.5 months at
least, you will save by refinancing. If you plan to sell your home before that
time, it is probably not a good idea. Please note closing costs can very widely
between lenders. Pay attention to the fixed mortgage costs, and don’t get
confused by tax and insurance escrows, these are costs you have even if you do
not refinance.
To figure out what you might save, take a look at your monthly mortgage
statement or coupon book to determine what your principal balance is and what
your interest rate is. Then contact a reputable mortgage professional to find
out what the rates are, what monthly principal and interest payments will be,
and what the costs would be for refinance.
Whether you’ve had your mortgage for a short period of time or for 5 years,
it still may make sense to refinance if you plan to stay in the house awhile.
Many people, who have had a 30 yr fixed interest rate for 5 years, for example,
may chose to refinance into a 25 year fixed rate and save money.
Finally, there are reputable lenders in the marketplace. Make sure to find
out about the costs and whether they are reputable lenders to do business with.
Other questions to ask you are: When is your rate locked in and for how long?
Am I comfortable working with this loan officer? Does he/she have my best
interests at heart? Does he/she address my questions and concerns?
If you don’t have a lender you’re already working with that you’re
comfortable with, contact your
local Portsmouth NH REALTOR for recommendations or contact
David Linker of Countrywide Bank… email
David or feel free to give him a call at any of the phone numbers beside his
picture.
Related Portsmouth New Hampshire Real Estate
Mortgage Information Posts:
Ann Cummings, New Hampshire REALTOR
Broker - NH and
Maine
RE/MAX Coast to Coast
Portsmouth NH
ann@anncummings.com
888-349-5678 x
3839
Servicing the
Coastal Areas of NH & Southern Maine 
http://www.newhampshiremainerealestate.com/001C6E
