You know the ultimate goal of an RTO home is this: home ownership. So it makes sense that you stay in the know of some of the biggest real estate trends to date (outside of rent-to-own, obviously!). That trend is something you should pay close attention to. Take notes even. It's....
Mortgage Refinance: the BEST Way to Not Only Save Money, But Practically PRINT Money!
It's a fact that this market has seen a massive high in refinance rates. It basically means that if you're a current homeowner, you can practically make money by refinancing for your loan and making lower payments. Why? Because at this moment current mortgage rates are extremely low. Take advantage of that.
Your typical 30-year fixed rate loans have dropped around 50 basis points. 15-year loans have dropped close to 30 points. And this looks like a trend that won't end any time soon. Jump on this, and your household could stand to save more than 30% on your home loan each year. Sounds good, right?
But Here's WHY Mortgage Refinance Is Currently Killing It
- For One Thing, the 30-Year Loan Is Dying
And at first glance, you'd think that sounds like a bad thing. It's not. Because of how low mortgage rates are getting, the trend is that a lot of homeowners are getting out of their old traditional 30-year mortgages, opting for mortgage refinancing and saving a ton.
In fact, last quarter saw a pretty shocking 38% of households refinancing their existing 30-year loans without looking back. Typically they end up choosing a shorter term, like 15 years, or even 20. And here's something more shocking: currently that rate of refinancing happens to be the highest ever. In the history of real estate.
Why is that? Low interest rates: that's why. Thanks to what's currently happening in the market, homeowners refinancing right now end up paying an incredible 65% LESS in interest over time. You're looking at the lowest APR and rates ever, too.
- Secondly, Those 15-Year Loans Are Cheaper All Around. Period.
Forget interest rates! Who wouldn't want to pay off their mortgages, not only cheaper, but faster? Between 2000 and 2012, 15-year fixed rate loans were literally 52 basis points below your typical 30-year loan of similar comparison.
What about closer to now? Try 70 basis points cheaper. So you see? Faster does mean cheaper these days, apparently.
- And Thirdly, HARP Homeowners Benefit Even MORE
HARP happens to also be known as the "Obama Refi." It's the option for many underwater homeowners who've lost equity that ability to refinance without having to take on private mortgage insurance coverage, also known as PMI.
The way it worked was those homeowners had to put 20% down at the time of that purchase without any PMI regardless of LTV. Because of refinancing, those homeowners can now put 10% DOWN with refinancing options, not having to worry about any increases to their mortgage insurance coverage. So...more savings. Can't argue with that.
According to HARP, you're looking at an alarming 622,000 U.S. households eligible for that HARP 2 refinance option. Chances are good your home's one of those estimated households. Worth checking into!
And the best part is, like we've already mentioned, these days refinancing saves you money. Period.
So Needless to Say, It's a Great Idea to Refinance Your Home Loan Right Now
The point is getting you to be a homeowner -- right now. And one of the easiest ways to do that is finding your dream RTO property right here where you can own that home with potentially zero down and an already low, low monthly payment.
And that's where the bonus comes in: refinancing lowers your payment EVEN MORE.
Need we say anything else?
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