Rates recently dropped and for some, this may be an opportunity to lower your rate and monthly mortgage payment saving tens of thousands of dollars over the life of your loan. Generally, the more you owe and the longer your time horizon for keeping the mortgage, the smaller the spread between what you have and what you can get needs to be. Closing Costs are usually the expense that drives the decision. In states like Connecticut & New Jersey where mortgage tax is not an issue, closing costs are low and the spread between what you have and what you can get thins even further. New York home owners must contend with either paying mortgage tax or paying for the process to avoid the mortgage tax. The best way to know for sure is to call a mortgage professional to review your loan, calculate closing costs and determine how long it will take to recoup the expense of closing with monthly savings.
Those whose mortgage rates are in the high 4’s and above and have their mortgages 4 years or more are probably good candidates to refinance. Between the rate reduction and real estate value increases there’s probably plenty to benefit from.
If you fall into the enviable category of high wage earners whose mortgage payment is not a burden, a 15-year fixed is a great option to reduce the interest you’ll pay even further on your mortgage and grow your net worth dramatically.
2 Robbie Road
Cortlandt Manor, NY 10567