Now might be the best time ever to refinance your home because rates are near the lowest they have ever been and because of new FHA rules, you could greatly reduce your mortgage insurance.I've played the refinance game for years now, every time the rates drop, I refinance a little lower. I honestly thought I would never have the opportunity to refinance again. But I met with a lender today and he told me how low rates have droppedso I'm rushing to send over all my information to him to get the process started for my house and rentals right away. Below are two main reasons why refinancing makes so much sense.
1) Interest rates are near the lowest of all time. I was quoted 3.75% today for a 30 year fixed mortgage and 3.125% for a 15 year fixed mortgage. If your interest rate is 4.25% or higher and you plan to stay in your home for a few more years, it definitely makes sense to refinance.
2) FHA announced a reduction in their mortgage insurance premiums recently. What this means is that instead of paying 1.35% per month for mortgage insurance you would now pay .85%. On a loan for $235,000, that is a savings of $100 per month. Combine the mortgage insurance premium savings with a lower rate and you could easily be paying $200 or more less per month.
Speaking with a lender is completely free and they can easily run the numbers based on how long you are going to live there to see if it makes sense or not so I highly encourage speaking with a lender today. Keep in mind that with home values rising so much around Denver as well, there is a good chance you could even get rid of your mortgage insurance all together so what do you have to lose? Let me know if you need the names of some great lenders and I can help to get you started.
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