Is the Term of Your Refinance Important?

by First Option Mortgage 29. October 2010 03:28

Is the Term of Your Refinance Important?

There are many terms to describe the process of refinancing your home. Cumbersome and stressful are two that come to mind. However, there is another type of term that you should focus on, the one that determines when you’ll finally be debt-free.

When refinancing your mortgage, don’t ignore your new loan’s term. Homeowners tend to focus on interest rates, points, and loan amounts, and forget to consider whether the standard 30 year term is really their best choice. Most of the time, it’s not. Assuming that you don’t refinance annually, you’ve already paid at least a year or two of interest on your current mortgage. Why, then, start over? Refinancing an existing mortgage with another 30-year loan resets your payoff clock and increases the total amount of interest you’ll ultimately pay.

At the end of the day, the term of your refinanced mortgage is as important as the rate. Even if you plan on selling the home before it’s paid off, the shorter term will enable you to build equity faster. When you focus on this bigger picture, your mortgage refinance doesn’t have to be cumbersome or stressful. Instead, it’s a process that builds wealth and improves your finances.

How can you tell which is the right loan term for you? Give one of our mortgage professionals a call and find out which one best fits your situation. The answer just may surprise you!

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Interest Rates | Mortgage Term | Refinancing

USDA Interest Rates

by First Option Mortgage 6. October 2010 19:13

USDA Interest Rates

This is arguably the hottest topic in the entire mortgage universe, “What is the lowest interest rate I can possibly get?” That, ladies and gentlemen, is the $64,000 question and yet the answer changes every day; even multiple times a day! However, the never ending quest for this answer leads most people to question the validity of FHA vs. Conventional vs. USDA vs. VA in terms of finding the lowest rate.

The truth of the matter is that yes, you can shave fractions of a point by bouncing between these loans and seeing which one posts the lowest rate at the time you look at it. What determines your interest rate more is the type of mortgage and length of time your mortgage runs for. I speak specifically about a fixed vs. an ARM vs. an Interest Only loan, or one of the several other possible programs available. These individual programs affect rate more than the people sponsoring it.

The biggest question is which program is best for you based on your own individual situation. Are you a member of our military? Do you live in a rural community? How much of a down payment can you afford if any? Based upon these and several other factors, you may qualify for a loan program you never even knew existed getting you not only a low rate but also a low monthly payment with a larger budget for a house!

Want to know more? Call one of our mortgage professionals today to find out what loan program suits you best and how you can lock the lowest rates of the day, or possibly even the hour! Hurry!