Homeowners may want to consider refinancing. Rates are at historically low levels falling to as low as 4.000 percent locally. But thereâ€™s another incentive related to a change in federal law.Â We are offering a free detailed analysis:
Fewer Americans will have the opportunity to refinance. Not only that, but they may end up stuck with a high-cost mortgage
Government intervention is going to impact us!Â Federal law Dodd-Frank Act, is expected to take effect in about a year. The rule requires lenders that securitize mortgages to retain 5 percent of the credit risk.Â Homeowners would be required to have at least 25 percent equity for a rate-and-term refinance or at least 30 percent for a cash-out refinance. Some estimates indicate that fewer than 50 percent of American homeowners have that kind of equity.
Residents who have equity in their homes and are thinking about refinancing should consider taking action soon.
Who should consider?
Reason to refinance is to lower monthly payments. With interests rates sharply lower, homeowners can save money, not only on monthly payments, but in the amount of money paid in interest over the life of the loan. Receive a free analysis of savings over time (Click Image above)
Term of the loan can be shortened. With all that said, refinancing may be a bad idea no matter how low the current rates are. If the value of the home has fallen considerably, the new loan may not be enough to pay down the existing one.
Refinance Condo Loan FHA Mortgage Rates- Mason, Ohio 45040
Who should think twice?
Near the end of paying off a 30-year fixed mortgage, then refinancing is usually not a good idea. The homeowner will lose equity in proportion to the amount borrowed over and above the remaining loan amount.Â The same is true if the homeowner has only a few years left on the current loan. It can put a struggling homeowner further in debt, when in a few years the homeowner would be debt-free.
How long the homeowner plans to stay in the home. As a general rule, the first few months of payments are directed toward the cost of refinancing the home loan. So it takes time to enjoy the savings gained through refinancing.
Extend mortgages from 15 years to 30 years are also cautioned about refinancing. Even with the lower rates, they will pay more over the course of the longer loan.
When circumstances are right, refinancing can lower payments and save a lot of money.
So itâ€™s worth checking out Refinance Condo Loan FHA Mortgage Rates- Mason, Ohio a suburb of Cincinnati, 45040.
Rates for 30-year fixed mortgage rates vary a bit even within Cincinnati. Currently, they range from about 4.000 percent to 4.750 percent. Fees for the mortgage service range from about $0 to about $3500.
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Provided by : Trent Warner of Union Savings Bank, 7615 Voice of America Dr., West Chester, OH 45069
Call Trent @ 513-701-2101