Update Your Mortgage to Save More!
Article • 01/31/2022 • 15 minute read
At Network Capital, you can work with strategic expert bankers to consult and learn more about your exact needs and what type of loan you may best suit your needs.
Whether it’s a Conventional, FHA, or VA loan we can help walk you through the options. I’m sure you’ve heard the lowest rates, historically low and that’s exactly what we are seeing in the market now. Wil rates hold or go up, actually, no one knows as the rates have fluctuated, but they’re low now, that is one thing we do know.
Even if you did a COVID refinance you should talk to a banker to see if it’s time to do it again. We have a Client Appreciation Program (CAP) that allows you to refinance now, and then refinance in six months if rates drop even further, and it makes sense for you.
So right now, we are seeing rates that may be less than 3%. I’m sure your parents told you as long as it’s half of a percent to one percent, it may be time to relook at your mortgage again especially if you’re planning to stay for a few years in your home sweet home.
Network Capital, as a direct lender, does not lender fees, but many banks do charge for things we do not. When you look at the numbers when considering a refinance, you must take that into consideration.
Some examples of borrowers that most recently refinanced saved over $6,200 annual savings. Pay off debt, and possibly even take some cash out to do that super summer home project, which increases the value of your home.**
Now is the time to come to the aid of your mortgage!
The booming housing market and increase in costs are an opportunity for you. Now you can use the money available in your home to work for you – pay off your debt, get rid of private mortgage insurance, since your home may have increased in value, also you can get rid of those ever-growing interest rates credit cards are charging you and get some cash out to reinvest in your property.
Here’s a simple example of how refinancing has helped in the real world.
A California family had a 30-year fixed rate which they refinanced to a new 30 year fixed even though they only had 16 payments to go. Yes, they did a 30-year fixed, you read that right.
Network capital worked with them to get them an escrow refund then a next better payment in September and closed in 10 business days, no home appraisal needed.
Now cashed out and paid off $8,000 worth of credit cards, some cash-out, and paid off $31,000 worth of student loans cashed out over $57,000 to do so.
In this case, they were upgrading their home, they want to stay in the home long term, they saved $1,211 a month 124,000 over the life of the loan, they listen to us on the mortgage radio show in Los Angeles, California.
Since there are no lender fees, this family wanted to pay extra costs to get a better rate to get better payment, and then not have to deal with this in case there's more alarming stuff down the road when it comes to pandemics and issues and masks policies and all that.
So people are smart and try to find ways to help their families. When there are no lender fees, it's not a bad idea to pay some points if you're going to be in the home long enough.
**Our Average Monthly Debt Savings (AMDS) and Average Yearly Debt Savings (AYDS) was calculated using 30-year fixed cash-out refinance (“Smart Refinance”) mortgage transactions that funded between January 1, 2019, and December 31, 2019, on Primary Residences, where the consumer received less than $6,400 cash in hand. The AYDS during this time was $8,748.00 per month, and with a 76% confidence factor, it was $6,648.48. The AMDS during this time was $729.00 per month, and with a 76% confidence factor, it was $554.04. These types of savings were typical but are not guaranteed; each consumers' situation is different.