Lexington Mortgage Refinance

With interest rates still at historic lows there may never be a better time to refinance your mortgage. If you have an above market rate, adjustable rate mortgage (ARM), or any other reason you might want to consider refinancing. We can help find the best loan to solve the issues on your mind.

The old rule of thumb was to reduce your interest rate by two percent in order to know if it made sense to refinance. Today we look at several things including; the amount of time to recoup your closing costs and your long term goals. Another good question is to ask yourself how long you plan on staying in the house. By answering these questions you can make a wise consumer decision on refinancing. The first thing is to take a look at your current interest rate and loan amount. The higher the mortgage balance, the more you will save by reducing your rate. If you owe $100,000 and reduce your rate 1%, you will save approximately $1,000 the first year. Whereas if you owe $350,000 the same 1% reduction will result in a savings of almost $3,500 the first year. The next thing to consider is the length of time you intend on living in the property. If you plan on moving in the next couple of years it might not make sense to refinance. On the other hand, if you plan on living in the home for more than three years you can divide the costs into your annual savings and get a break even point. If you can get back your closing costs in less tahn two years it might be right to look into refinancing. Call us today if you have questions.