Refinance Opportunity?
Refinance Opportunity? To find the right time for you to refinance, answer these four questions:
1. What’s your interest rate versus the interest rate you could get today?
The bigger the difference between your rate and today’s rate, the more you can cut your monthly payment by refinancing. If you have a $100,000 mortgage:
At 6 percent, you pay about $600 a month in principle and interest
At 5.5 percent you pay about $568
At 5 percent you pay about $537
2. Do you need a more predictable mortgage payment?
If you’ve got an adjustable-rate mortgage, refinancing into a fixed rate mortgage lets you lock in a rate and know exactly what your future payments will be. You pay a higher interest rate for that benefit.
Lenders also make you pay more for ARMs that don’t reset for a long time. The longer the initial rate lasts, the higher the interest rate.
That’s why a 1-year ARM might have a 2.50 percent rate compared with 3.25 percent for a 10-year ARM.
How much risk are you willing to take on to get a lower monthly payment? Can your budget handle potential payment increases if interest rates rise?
3. How long do you plan to keep your home?
If you’re in your forever home, then opting for a fixed-rate mortgage locks in your payments for the next 30 years.
If you plan to downsize into a smaller home in a few years, a 5-year ARM or the new 15-year arm will give you a much lower interest rate and monthly payment than a traditional 15- or 30-year fixed rate mortgage. And, you’ll sell and pay off the loan before the ARM resets to a new rate in year six.
For each refinance loan you’re considering, your loan officer can show you how much you’ll pay in total during the time you plan to stay in your home.
Also check to be sure you’ll be there long enough to earn back the money you spend on closing costs.
4. Will you get a tax benefit?
If you itemize your tax deductions, the interest you pay on your mortgage may be deductible.
If you take cash out when you refinance and use the money to pay off credit cards or auto loans, you may also be able to deduct that interest.
Refinance Opportunity? Please let me know if I can help you with your home or downsizing…
About Deborah Laemmerhirt
Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground.
Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game.
I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers.
As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible.
My services include:
Explaining the home selling and buying process thoroughly
Diligently selecting homes that meets your criteria
Pricing your home correctly and implementing a unique yet proven marketing plan
Negotiating on your behalf
Tracking the closing process to ensure a smooth transaction
I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process.
I specialize in both Residential and Commercial Properties.
I also head a Real Estate Group to provide you with expert service and support.
Areas of Expertise
Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings.
I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.
