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Why you should consider refinancing NOW…

Recently passed legislation may likely eliminate “Yield Spread Premiums” which are rebates from the lenders. These rebates are often used to do “No Point/No Fee” loans.

For “Conforming Loans” $417,000 and below (with $250,000 minimum) this means it is possible NOW to reduce your 30 year fixed rate to between 4.625%-4.875% AT NO COST! This same loan without rebates will have “points” and “closing costs.” Closing costs for loans like this currently run $3000-$4000 plus whatever “points” will be charged. Why pay THOUSANDS later when you can pocket it NOW. Currently if you pay closing costs and/or points, your rate will be in the low 4’s which could also make sense … I’ll do the math for you and provide excellent advice throughout the process.

If your current interest rate is above 4.875%; If you need to take some “cash out” then do it NOW or you will pay a lot more in the future to accomplish what you could do now, possible at NO COST.

$400,000 Loan Amount Payments at Different Rates:

6.00% = $2,398.20 5.00% = $2,147.29 4.75% = $2086.59 4.50% = $2,026.74

$700,000 Loan Amount Payments at Different Rates:

6.00% = $4,196.85 5.00% = $4,196.85 4.75% = $3,651.53 4.50% = $3,546.80

Do The Math! Your monthly savings X 360 = ________________

And remember, what goes down will always go back up …

Record Lows Continue for Mortgage Rates

The Wall Street Journal | Friday, July 30, 2010

Mortgage rates fell slightly the past week, with three of the four rates Freddie Mac tracks—including the 30-year fixed-rate—falling to record lows, according to Freddie’s weekly survey of mortgage rates.

The rates on all but one-year adjustable-rate mortgages hit the lowest point since Freddie began tracking them—1971 for the 30-year loans, 1991 for 15-year fixed and 2005 for 5-year adjustables. The one-year set yet another 6-year low in the latest week.