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Richard C. Lee's Blog

By Rich Lee | Agent in Boston, MA

Should You Refinance Your Mortgage?

Mortgage Rates DecreaseI put into dollars what your mortgage payment will be at different interest rates.

Interest rates have generally been falling for years.  Take a look at a five year mortgage interest rate chart @ BankRate.com.  I did some calculations for you at different interest rates based on a 30 year term.  Let's assume that you are buying a house for about $350,000, the average price today for a single family house in Medford, and you have financed 80% of that.  If you borrowed $280,000 five years ago, you would have gotten an interest rate of about 6%.  That would put your monthly mortgage payment @ $1,679.  If you borrowed the same amount today, your monthly payment would be $1,337.  Refinancing that mortgage today would save you about $350 / month.

RateMonthly Mortgage Payment
6%
$1,679
5.5%$1,590
5%$1,503
4.5%$1,419
4%$1,337

Check out my mortgage calculator that provides you with your monthly payment and monthly estimates for home insurance and tax costs.

Comments

By John Armstrong,  Thu Nov 10 2011, 19:17
People than plan to stay in their homes need to make sure they are squared away with a great rate.

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