Historic Low Interest Rates, Should I Refi? What is YOUR Best Interest?
The current interest rate market is at an all time low. If you own a home, one maybe is thinking: Should I refi? When looking to refi, I review with my clients the following:
- How long do you plan on staying in your current home?
- How much of a savings can you obtain by a refi?
- Shall we reduce the term of your current loan?
- Will you be making any big ticket item purchases in the near future (car, camper, boat, sending kids to college, or start up a new business)?
- How much will the refi cost me?
- Costs verses savings per month
- What are my short term and long term goals/plans?
When looking to refi, one needs to look at the big picture-does it make sense for my short term goals and long term goals? I had a client come to me and say they made a huge mistake by refi’ing with a mortgage company who didn’t look out for them. While lowering their rate from their 30 year term and going to a 15 year term, the customer never realized to look into the future to realize what their plans maybe. While the shorter term would mean paying the loan off faster, the larger monthly mortgage payment blew up their monthly budget and they soon found themselves drowning in debt. The loan officer with the other mortgage company never took the time to make sure the loan program fit their needs and goals. In the end, I helped them work out a plan to reduce their monthly budget and worked on a plan for their future. This plan met their short term goals and long term goals. When you work with someone, make sure they are looking out for YOUR best interest.
Not sure if you should refi? Call or email me and we can review your options:
262-696-5041 or krissteinbach@inlanta.com
