Monday, February 16, 2015

2015 May Be A Great Time to Refinance Your Mortgage and Save


Current mortgage interest rates are fantastic

The average 30-year, fixed-rate mortgage costs just 3.75% (Feb 16, 2015); the average 15-year mortgage rate is 3.00%. See today's rate by going to and selecting mortgage rates at the top of the page.

Lowering your interest rate even one point (or even less) means saving thousands of dollars in interest payments over the life of your loan. And saving money on your mortgage is one way to work toward financial security.

You don't necessarily need to read all the details below to determine if refinancing now makes sense to you. The simple and free way to know for sure is to give Bill Rayman a call. If possible grab your mortgage so that you can give Bill a couple of pieces of information about your current loan. You can reach Bill at 424-354-5325. If he isn't in, he will call you back same day.

If you want to do a quick analysis, consider the following elements.

Refinance if you can shave a percentage point off your mortgage rate

The 1% rule is still a good rule of thumb to follow when deciding whether it makes sense to refinance, but in this environment, you may find it financially beneficial to refinance if you can save half that amount.

Let's say your home loan rate is about 4.75%. Refinance with current interest rates and you'll reduce your monthly payments by about $60 a month for every $100,000 you borrow. So if you have a typical Southern California Mortgage of $250,000, you will be saving $150 a month, which is $1800 a year or $54,000 over the course of 30 years. Half of that would still be a great deal depending on other circumstances.

Refinance if you can reduce or eliminate mortgage insurance

FHA rates have just dropped by .4% or more, and that has resulted in similar drops in private mortgage insurance (PMI). This means that you might be able to save enough in mortgage insurance alone to justify refinancing. But if you can save .4% on FHA or PMI and another .5% on your rate, that will generally be a fantastic deal.

Here is a detailed post on the changes in mortgage insurance and FHA.

Keep in mind that many other issues will effect the final numbers such as your credit score, income, home value, equity, and more. It costs nothing to ask Bill Rayman to evaluate your situation and offer you options that might lead to savings of many thousands of dollars per year. 424-354-5325

Bill Rayman Home Mortgage

12121 Wilshire Blvd
Suite 350
LA CA 90025


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