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Should I refinance my Maryland Mortgage to a lower rate?

Should I refinance my Maryland Mortgage to a lower rate?

Rates have dropped and it may make sense for you to refinance, but there are lots of questions other than rate to be asked.  There is a cost to refinance, so it is important to look at all of your options.  Sure, there are "NO cost refi's" which usually means a higher rate that will allow the lender to pay your fees. You may also be able to roll those costs into your new mortgage (not no cost!). Your breakeven could be as quick as immediate, and as long as 4 years or more.

  • How long do you expect to be in the house?
  • What is your current interest rate?
  • What type of loan do you currently have? 
  • What's your goal with regard to the refi?  Shorter term?  Lower Payment? Debt Consolidation? 
  • How much do you owe?
  • What's your home worth? 
  • Do you have equity?

REAL WORLD EXAMPLE...

I just spoke to a client today who is thinking of refinancing.  I gave them 2 options...pay about $40 more per month and cut 6 years off your existing mortgage (paying it off in 15 years) or drop your payment by about $300/month, lowering the interest rate and extending the term.  IF they choose the 30 year loan (2nd option) and continue to pay their current mortgage payment (which is comfortable), they will still pay off their loan in less than 20 years, about 2 years faster, but have the option to pay the lower payment should they have unexpected expenses.

I am happy to review your current loan to help you to determine your best option.

Bridget "Maryland Mortgage Mama" McGee NMLS #196068 410-960-2061

Should I refinance my Maryland Mortgage to a lower rate?

Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO   bridget.mcgee@swbc.com or www.marylandmortgagemama.com

 

If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 1 commentBridget "Mortgage Mama" McGee • December 28 2011 04:56PM
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