For most people their mortgage is their most important financial consideration, and a great many people don’t know their mortgage rate, balance due, or how much principal or interest they are paying monthly. Rates are dropping, so now is the time to review your mortgage, and see if you can generate some savings.
Those who want to reduce their terms and go from a 30-year fixed-rate mortgage to a 15-year loan, might be able to ax an additional 0.5 percent from the top since since 15-year loans usually have lower rates. That might also mean larger monthly payments, but overall less interest paid over the life of the loan. Adjustable-rate mortgage holders can also profit from dropping rates; the timing might be right to lock via a fixed-rate mortgage as rates continue to hover around the 4-percent mark.
Finally, folks hoping to tap their equity while reducing their interest rate can take advantage of cash-out refinances. These are low-interest loans that allow homeowners to borrow against their equity by replacing their existing mortgage with a new loan for a higher amount and receiving the balance in cash. These can be useful for people who want to make home improvements as the interest is tax-deductible.
Remember, in high tax California, even a $200 savings on your mortgage payment is equivalent to getting almost a $4000 a year raise from your company. Please call me at 925-216-6233 so we can take a look at your current situation, and perhaps get you some additional income. You wouldn’t think twice if your company gave you a raise, you would accept it with open arms. So why don’t you give yourself a little extra income.