The purpose of my weekly column is primarily to provide information to educate current and future homeowners about the mortgage industry. Every once in a while, I may deviate from the norm to talk about something that is timely. Well … today it’s mortgage rates. They dropped.
Your bank or your loan servicer aren’t contacting you to tell you about opportunities to reduce your rate on your existing loan, right? They don’t want you to. But I want you to. There’s no reason to pay a higher rate just to benefit the bank.
Do yourself a favor and see if any of the following apply to you:
- If you are paying PMI, please reach out.
- If you have a rate in the 4’s, reach out.
- If you would like to reduce your loan to 20 years or 15 years without a big payment increase, reach out.
- If you have an FHA loan, definitely reach out.
- If you have a VA loan, definitely reach out.
Here is why these are so super duper important. If you have an FHA or a VA loan, we do what’s called streamlined refinances. Because both FHA (Federal Housing Administration) and VA (Veteran’s Affairs) are loans are guaranteed by the government, you don’t have to go through the full re-qualifying process again. And no appraisal is required. These streamlined refinances are just that … streamlined. Additionally, most costs can be absorbed so you need little or no cash for closing costs.
Now, if you don’t have an FHA or VA loan, you still need to take action. The idea here is to save yourself lots of interest money by benefiting from an unexpected rate drop. All year long, it’s been predicted that rates will increase. This has lulled most of you to sleep and has made most homeowners less responsive to rate drops.
Do yourself a favor and contact our team. One of our team members is taking advantage of this rate drop and refinancing her own house that she just bought a year ago. She is going from a 30-year term to a 20-year term and saving nearly $188,000 in interest over the life of the loan. Learn how our streamline refinance programs can provide you much more than you would think. I promise you won’t be disappointed. Remember, your bank and current loan servicer are totally cool if you do nothing. They like you paying them more than needed. We don’t like it … at all!
This weekly Sponsored Column is written by Mike Miles of Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation. Contact Fountain today.
Mike Miles NMLS ID: 265927; Fountain Mortgage NMLS: 1138268