Tuesday, March 5, 2013

Fast Becoming a POPULAR Choice is the 15 Year Mortgage


Due to historical low rates the 15 year mortgage is the choice for approximately 30% of loan originations this year so far. It’s easy to understand this movement to a shorter loan term with even lower rates. You can SAVE a whole lot of money on interest and own your home faster. We haven’t seen these rates since 1940 making this a GREAT time to refinance.

It’s easy enough to do the math go to Mortgage Calculator and try it and you will be surprised to learn how much you can save. Use this week’s prevailing average rate for the 15 year fixed 2.79% and your current loan balance. You may be surprise to see your payment is the same or less than your 30 year fixed especially if you have been paying on that loan for a few years.

Even if you owe more than your home is worth you may be able to refinance. If you currently have a Fannie Mae or Freddie Mac loan, you may qualify for a government sponsored HARP loan and still be able to convert that 30 year to a 15 year mortgage. HARP loans are available for owner occupied homes both primary, second home or vacation homes, even investment property if you meet the guidelines. In most cases appraisal waivers are issued by the lender and no appraisal is needed.
 
We all have the dream of paying off our mortgage and actually owning our home. Most of us would like to do this before we retire and stay in our home during our golden years. You might be surprised to hear that more young people between ages 24 – 39 owned their home outright then folks between ages 40 – 65. They are doing it with smart finance choices. 

You can reach out to me and we can go over your current mortgage statement and run the numbers. I would love to hear from you. Leave your comments or questions they are always welcome. Thank you for stopping by.

Roxy Redenbaugh
ACMC Loan Consultant
Branch Manager
NMLS #269926
808-637-0011

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