"But it's barely $100!"
Yes, you've heard that interest rates are at historic lows and
everyone should look into refinancing right now. Some of our
clients are saving dramatic sums of money in interest payments each
month and year. Some of our clients are not only saving
on interest, but they are also reducing the term of their
loan. I have to tell you that it does my heart good when I
see a client save $250 each month, money that they can redirect to
debt elimination or retirement savings. For one of our
clients recently, this savings meant the difference between sending
her son to college and not. Now, how's that for
dramatic?! By doing something as simple as refinancing their
mortgage to a lower rate, we are seeing dreams come true.
Yep, I love my job.
For some of our clients, the savings is not that
noticeable. There have been a few clients I talked with
this week that might only save $10 to $20 per month by
refinancing. With savings this low, it's hard to justify
spending $425 on an appraisal. I have recommended for many of
these folks that they stay put in the mortgage they currently
have. When you already have a fixed interest rate of
4.25%, that's not a bad place to be.
But consider one of my clients I spoke with this week. By
refinancing, she will save nearly $100 per month. For some of
us, we might have a hard time moving forward with a decision when
the savings is not as high as others are seeing. I've talked
with a few homeowners this week that would simply shrug off $100 a
month as insignificant. While some might say that $100
is a drop in the bucket, it is not so for this gal.
For her, a $100 lower house payment means she can get better
coverage on her health insurance. It means she can finally
get serious about saving for retirement. It means she can buy
the better quality pet food for her beloved beagle. It means
that she doesn't have to go back to rework her budget just because
she needs to replace her sneakers. You see, for her, $100 per
month means that we have cut her housing expense by more than 10%
every month. Now that's the kind of life-changing
results that gets me excited.
What's in it for you? Should you or someone you know take
advantage of these historic low rates or is this just hype? I
don't know, but I wonder what you could do if your house payment
were 10% lower each month. I'd love to see what better uses
you could put this money to. All you have to do is grab a
recent mortgage statement and spend about 10 minutes on the phone
with me. I can give you a quick analysis to see how much you
could reduce your house payment.
At your service,
Christine Jensen