Today I’m joined by Nate Gafken and Brent Honshell from Palmetto Mortgage to discuss the topics of interest rates and refinancing.
As most of you are pretty well aware of by now, interest rates have recently taken an unexpected turn and have now reached historic lows. As a result, we’ve seen a flurry of refinancing activity in the market.
What are the main reasons that people are choosing to refinance right now?
Obviously, the low interest rates are among them, which can lead to lower monthly payments. Some clients of Palmetto Mortgage are saving between $100 and $200 a month. However, there are also other factors:
Assuming you have equity in your home, you can turn it into cash to help with certain things like debt consolidation, home improvements, vacations, college, investments, and more. Refinancing also allows people to switch from a 30-year fixed mortgage to a 20-, 15-, or 10-year mortgage, which will save them huge amounts of interest.
“If you have equity in the home, you can roll a small amount from your closing costs into the new loan and refinance for zero dollars out of pocket.”
How much does it cost to refinance?
Many people assume that it costs thousands of dollars to refinance their home, but that’s not necessarily the case. If you have equity in the home, you can roll a small amount from your closing costs into the new loan and, assuming you’re not trying to turn your equity into cash, you can do that refinance for zero dollars out of pocket. Even though, this way, your loan amount might be slightly higher, you can usually recoup the closing costs that were combined with it in just a couple of years.
If you have any questions about refinancing your home and would like to speak with professionals about the options you have, feel free to contact the Palmetto Mortgage Group at (803) 727-1941.
And as always, if you have any questions about real estate, don’t hesitate to reach out to the Haro Group. We’d love to help you.