Tag - refinance rates

You Have Nothing to Lose with a Refinance

A recent borrower we worked with bought a townhome 18 months ago with a 4.75% rate. After running the numbers we found that we could refinance to drop her rate down to 2.625% and save her $350 per month. At first she was super hesitant to do the refinance because she was only planning to live in Utah for another 2 years. She was interested in the idea of keeping the property as a rental when she moves out of state but had not fully made up her mind yet. She spent hours running numbers this way and that to work out if refinancing would benefit her long term For me it was a super easy decision because her breakeven point was only 10 months. Meaning that 10 months of saving $350 paid all of her refinance costs. She is definitely staying in Utah for another 2 years so she will save $350 every month after month 10. And if she does decide to keep the property and convert it to a rental down the road she is in a much better position to have cash flow. She had nothing to lose with this refinance and in the long run it saved her thousands. If you are wondering what a refinance could do for you, give me a call. I'd love to price out some scenarios to show you what potential savings a refinance could provide for you.

ALV Mortgage Can Help Set You Up For Financial Success

Some look at their mortgage as being a lifelong payment, others look at it as an opportunity for investment that could one day bring in cash flow. In today’s blog we are going to look at two of our borrower’s that took advantage of the current low interest rates to refinance their loans to help set themselves up to achieve their financial life goals.  Firstly, we have Brandon. Brandon’s goal is to buy a new house in a few years and convert his current one into a rental. He wanted to lower his current mortgage payment so that when the house is converted to a rental, there will better cash flow. He reached out to see what we could do to secure him a better rate and lower his monthly payment. His original loan began back in July 2019 with a rate of 3.75%, a monthly payment of $1,358, and total interest over the life his loan was set to be over $143,000. After running the numbers, we found that we could refinance him into 29-year term and not have to reset his mortgage with another 30-year term. We got him an amazing new rate of 2.82%, his monthly payment dropped to $1,267 and his total interest over the life of the loan decreased to $101,491. Thanks to the refinance Brandon now plans to pay off this house before he is 60 so he can use 100% of the rental income to supplement his retirement income. What a fantastic plan that we are happy we were able to help him set into motion! Our second borrower, Shelly, was referred by her brother in law after he told her how much she could save by refinancing into a 15-year loan with me. Shelly originally bought her house in 2017 with FHA rate of 3.875% and a monthly payment of $1,670. Being in an FHA rate meant she would be paying mortgage insurance on top of her interest charges for the life of her loan. That put the total interest over the life of her loan over $166,000. The only way to remove mortgage insurance is to refinance. At first, she was really skeptical and did not think it was possible. However, there was no reason for her be nervous because we were able to get her a great new loan! Shelly was able to refinance into a conventional loan with a 5-year fixed rate of 2.625%. Her new monthly payment was $3 higher than her original payment, but she shaved 12 years off her new loan and after removing the mortgage insurance we were able to lower her total interest paid over life of loan to $45,541. This refinance was able to save her about $121,000 in interest charges! Her house value went up, now at an 80% loan value with no mortgage insurance. Shelly is only 37 years old and is beyond excited that she is now set to have her house paid off before she turns 52!  This completely changes her outlook on her retirement. Both borrowers had completely different stories and completely different loans, but one thing in common; they both needed a refinance option that would help them achieve their financial goals. ALV Mortgage loves helping people achieve their goals. We have a knowledgeable staff that knows the ins and outs of the industry to help get you the best deal possible for your loan. If you too are wanting to set yourself up for future financial success give us a call today. We may know a few tips and tricks to get you into the rate, term, or monthly payment that you are wanting. 801.206.4343, NMLS # 888979

Weekly Update on Mortgage Rates and 3 Things You Need to Understand

mortgage ratesAlthough mortgage rates started out yesterday (Feb 19) a bit lower than they did the day before, this didn't last for long.  In fact, by yesterday at mid-morning, bond markets were already losing ground.  Because of this, lenders began issuing negative reprices.  All in all, this week's mortgage rates are causing home buyers to look at higher closing costs if they don't lock in over the next couple of days.  The best borrowing rate as of right now is generally being issued at 4.375%, and this is for a 30-year fixed loan.  There has been no detectable drama in this week's mortgage rates.  Because of this, there is no clear indicator as to how the future market for mortgage rates is going to go.   We've only seen two major moves in 2014, with the big move towards lower rates occurring in January, and then back up to higher rates last week.  Because there has been no major move this week, some market specialists are predicting there to be no major move for the next few weeks.  In fact, some experts are predicting no move will take place until the harsh winter weather conditions get behind us.  

Top 3 Things to Understand about Mortgage Rates

How to secure the best mortgage rate: The best mortgage rate comes at a time in which mortgage rates are low and you have a good credit score.  Most times, when mortgage rates are historically low, you will do best to secure a fixed rate mortgage loan because this will guarantee the low rate for the life of the loan. How mortgage rates affect the housing market: When mortgage rates are high, people tend to steer clear of buying homes.  When they are low, people of course flock to their nearest mortgage lender and apply like crazy for a loan.  Because mortgage rates tend to fluctuate on a daily basis, this means the housing market is affected from one day to the next as to whether or not people are interested in buying a home; however, when it is predicted that mortgage rates will stay somewhat low for an extended period of time, this is when the housing market booms. Things that affect mortgage rates: There are three main factors that affect mortgage rates: Type of loan, the Federal Reserve and your credit score.  Each factor plays its own part in the type of rates that you will qualify for; however, the two most influential are your credit score and the Federal Reserve.   If you would like more information on current mortgage rates, or info on securing a mortgage loan, please don't hesitate to contact Anthony VanDyke at ALV Mortgage today.