June 13th, 2014 2:46 PM by Taydus Taydus
Most of you have rates either near or below 4 percent. If your rate is at or below 4.625% there is
little benefit to refinancing unless you have a large loan balance so do not
believe what you hear in the media.
However, there are other reasons to evaluate your options
because you can benefit from the increase in property values over the last two
years. Some are saying that we have
experienced a 16% increase in the last 12 months alone.
The people that will benefit the most are individuals that
have mortgage insurance. You can
petition for the mortgage insurance to be removed if you have a 20% equity position
in your home. The cost is minimal and
the savings potentially significant. You
can check with your Realtor and ask them about the current valuation of your
Those of you with 1st and 2nd mortgages
may want to consolidate into one loan depending on how long you plan on owning
your home and the size of the second mortgage.
The larger the second the more likely you should refinance because of
the higher exposure to the rate adjusting upward.
Debt consolidation is another reason to consider a
refinance. With the high interest rate on credit cards it is virtually
impossible to get ahead so take advantage of the equity and consolidate into
tax deductible financing at a much lower rate.
Debt consolidation is a smart financial move. The past problems with cash out refinances
that occurred in the last decade were because people were leveraging themselves
up to 100%. In today’s market most major
lenders cap cash out refinances at 85% with a minimum credit score of 700. The higher the LTV (Loan to Value) and the
lower the credit score the higher the rate you will end up getting.
The last group that needs to start planning are those of you
with adjustable rate mortgages. You may
have another year or two to enjoy the low rates but when they start moving
upwards they may move quickly which is typically the case and then it is too
late. It is a good idea to at least
start a dialogue at this time so that I can notify you when things start to
I am more than happy to review your financing and give you honest
advice. If you have friends or family
that may benefit from this information please pass my name on to them. I assure you that they will thank you for the
Information provided by Joe Taydus at Mutual Security Mortgage. If you have any questions or would like more information regarding refinancing your home please contact Joe at (303) 443-5575