Myths About Refinancing

Mortgage Rates Drop – Many Question Refinancing

Last week, Freddie Mac posted the results of its Primary Mortgage Market Survey® announcing that mortgage rates have dipped to their lowest point since June of 2013. That begs the question, “Should I refinance?”

There is a lot of false information about refinancing floating around out there. Here are a few refinancing myths debunked that will hopefully encourage you to call your licensed Inlanta Mortgage loan officer. Inlanta loan officers are trained to assess your situation and give you straight up advice about your home financing situation. Find a loan officer near you using our branch locator for a free loan review to determine your potential savings and benefits.

Refinancing Myths Debunked

  1. “I’ve read that the rate needs to be 1% or 2% lower than my current one.” – When average loan amounts were much lower, it took a much bigger drop in rates to achieve tangible savings. Today, even small rate differences can make a big impact. The best way to determine value is to simply divide your costs by your savings. This provides a “break-even” period, and if you know you’ll be using your loan past this point, the rest is pure benefit.
  2. “I haven’t yet reached the break-even point from my last refi.” – That may be okay. Refinancing again will require additional investment, but it could get you to an overall break-even point—and greater savings—more quickly.
  3. “I don’t want to add years back to my loan.” – One of the benefits of the current rate market, is it can provide the opportunity to lower the term of your loan, paying your house off sooner and with less interest cost. If lowering your term is not your preference, keep in mind the new loan term created when you refinance is only on paper. You determine the actual length of the loan by how much you pay. If lowering your interest rate saves you $100 per month, add that money to your new payment. You will reduce your balance more quickly and reach free and clear ownership faster than you would by keeping your current loan.
  4. “It’s too expensive. I’d rather save my money.” – Refinancing is all about saving money! The historically low interest rates that make refinancing such a good deal right now also make “saving” your money in the bank a lousy one. Banks are paying just fractions of a percent to hold your cash, but investing in a refinance could save you hundreds of dollars per month for a far greater yield on your cash.

Refinancing can have other benefits, too. A lower rate may mean not only a smaller payment but more paid toward principal each month, too. You may be able to free up cash for renovating your home, financing a college education, purchasing a vacation home or investing in property without adding to your monthly expenditures.

Find a licensed Inlanta Mortgage loan officer near you using our branch locator to help you decide if refinancing now makes sense for you.

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Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships.

About Inlanta Mortgage

Last year, Inlanta Mortgage celebrated its 20th Anniversary. Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin NMLS #1016. Inlanta Mortgage was recently named a Top Mortgage Lender in 2013 as well as 2012 by Scotsman Guide. Inlanta was also recently named a Top Workplace in 2014 as well as in 2012. Inlanta was named one of the “Top 100 Mortgage Companies in America” in 2011, 2012 and 2013 and one of the 50 Best Companies to Work For by Mortgage Executive Magazine.