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Could a Refinance Help you?

It’s Not too Late to Refinance

With mortgage rates below 4% since May 2019, you would think that most people would have already refinanced but according to a recent Lending Tree survey, 49% of homeowners say they are considering a mortgage refinance in the next year.  The report estimated that over a third of homeowners have mortgages above 4% and 11% didn’t know what their rate was.

Slightly more than a third of the people surveyed regretted missing the opportunity to refinance in 2020 when rates did hit their historical low.  Homeowners should not beat themselves up on this issue because the only way to tell that it hit bottom is after it has started going up again.

The current rates are very favorable to borrowers and some economists believe that when inflation is factored in, the rates are close to zero effectively.

While there are nine specific reasons people choose to refinance their homes, two are among the most prevalent: to lower the payment or take cash out of the equity.  Most reasons include:

  1. Lower the payment
  2. Lower the rate to pay less interest
  3. Shorten the term to pay off the loan sooner
  4. Take cash out of equity to pay off higher cost debt
  5. Take cash out of equity to improve their liquidity
  6. To remove a person from the loan as in a divorce
  7. To combine a first and second mortgage
  8. To replace an adjustable-rate mortgage
  9. To consolidate debt

There are some commonly held myths about refinancing among homeowners such as:

  • You can only refinance your home once.
  • You must refinance through your current lender.
  • There should be two-percent difference in the rate to justify it
  • You need 20% equity to refinance
  • Applications require a lot of documents
  • You need cash to cover closing costs
  • You won’t save that much by refinancing
  • It’s free to refinance

If your current mortgage is a FHA, there is limited borrower credit documentation and underwriting program.  The mortgage must be current and not delinquent, and the refinance must result in a net tangible benefit to the borrower such as a lower rate, lower payment or better terms.  For more information, see Streamline or contact an FHA approved lender.

VA has a similar program if your existing mortgage is a VA-backed home loan. The purpose is for a borrower to reduce their payments or make their payment more stable.  They must certify they are currently living in or did live in the home covered by the loan. The Interest Rate Reduction Refinance Loan, IRRRL, may be available.

USDA also has a program for current USDA direct and guaranteed rural homebuyers who have been current on their payments for 12 months prior to requesting the loan refinance.  No appraisal or credit review is required.  There must be a minimum of 40% net reduction to the PITI payment.  More information is available.

Before refinancing your home, determine how long you plan to keep the home.  If the reason for refinancing is to save interest by getting a lower rate, you may accomplish that immediately.  However, if you plan on selling soon, you may not be able to recapture the cost of refinancing.

There are costs associated with refinancing regardless of whether you pay for them in cash, or they are rolled into the cost of the mortgage.  These costs can range from two to five percent of the mortgage.

Check out the Refinance Analysis to determine your breakeven point and savings.  Call if you have questions or want the recommendation of a trusted mortgage professional.

If you would like any professional residential Real Estate advice, contact us at Paramount Real Estate Services.  1008 12th St. SE Salem, OR 97302  503-851-1645

Also, to mobilize us right away to help you move, visit us here:

brianandnina.com/buyers

brianandnina.com/sellers

 

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6121 Santiam Springs Ct. SE Salem, Oregon

6121 Santiam Springs Ct SE
Salem, OREGON 97317
Price: $539,900

6+ Bedrooms, 4 Bathrooms
5943 Square Ft

Listing # 652659

Enjoy the finer things in life! If you seek the privacy of abundant space & your own 900 SF Shop & 2 greenhouses away from it all, then take a close look at this gorgeous property! 7 full bedrooms & 4 baths along w/bountiful living spaces; Formal Dining, Living Rm, Family/Theatre Rm, Bonus Rm & an amazingly oversized 1200 sf 3 car garage relaxing on over 2 manicured acres with a pond make this home a desireable find. There are too many amenities to list so view this one as soon as possible! See MLS 653006.
For additional information about this 5,943 Square Foot, 6+ Bedroom, 4 Bath property located in Salem, Oregon, please fill out the Request More Information form.

 

 

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5407 Burbank St N Keizer Oregon

5407 Burbank St N

Keizer, OREGON 97303
Price: $175,000

4 Bedrooms, 2 Bathrooms
1568 Square Ft

Listing # 651363

Great one story home with open kitchen, dining room & living room. 4th bedroom is at the front of the home. Would make great office. Master is nice sized with WIC. A great starter home.
For additional information about this 1,568 Square Foot, 4 Bedroom, 2 Bath property located in Keizer, Oregon, please fill out the Request More Information form.

 

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Listing courtesy of KNIPE REALTY NW, INC.

5439 Brookwood St S Salem Oregon

5439 Brookwood St S
Salem, OREGON 97306
Price: $155,000

3 Bedrooms, 2 Bathrooms
1249 Square Ft

Listing # 651366

Very clean, move in ready home in South Salem. Tile entry. Fenced yard. New 50 year roof in 2008. Also gutters 2008! Underground sprinklers.
For additional information about this 1,249 Square Foot, 3 Bedroom, 2 Bath property located in Salem, Oregon, please fill out the Request More Information form.

 

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Listing courtesy of COLDWELL BANKER MOUNTAIN WEST.

719 Hazeltine St SE Salem Oregon

719 Hazeltine St SE
Salem, OREGON 97306
Price: $237,400

4 Bedrooms, 2.5 Bathrooms
2894 Square Ft

Listing # 651356

Large and spacious Creekside Home. Formal living and dining rooms. Family room opens to the kitchen. All 4 bedrooms and laundry room upstairs. The den is on the main floor. Huge master suite w/WIC, and master bath includes double sinks and Jacuzzi tub. Landscaped yard with sprinkler system. Backyard has Trek Deck. Garage has loft for extra storage. Great value in top rated neighborhood!
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Listing courtesy of ERA NORTHWEST PROF REALTY.

4539 Independence Dr SE Salem Oregon

4539 Independence Dr SE
Salem, OREGON 97302
Price: $300,000

3 Bedrooms, 3 Bathrooms
2539 Square Ft

Listing # 651381

For additional information about this 2,539 Square Foot, 3 Bedroom, 3 Bath property located in Salem, Oregon, please fill out the Request More Information form.

 

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Listing courtesy of WINDERMERE PACIFIC WEST PROP.

6068 Crampton dr N Keizer Oregon

6068 Crampton dr N
Keizer, OREGON 97303
Price: $309,000

2 Bedrooms, 2 Bathrooms
2009 Square Ft

Listing # 651257

Beautiful single level at McNary Estates, Built by Ernie Fish, wood floors thruout, vaults, skylights, extensive tile, kitchen with center island, gas fp, formal LR/DR, large master suite with jetted tub, nice designer colors, vaulted den or 3rd bedroom. s/s appliances, bay windows, security system, water softener, rear patio awning, great views of #4 at McNary.
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381 Sunset Av N Keizer Oregon

381 Sunset Av N
Keizer, OREGON 97303
Price: $265,000

3 Bedrooms, 2 Bathrooms
2040 Square Ft

Listing # 651244

Recent remodel on this classic charmer created a great room with lots of natural materials including slate, oak and travertine. Spacious master & extra bedroom & huge bathroom upstairs. Full basement with lots of useable space. All on almost a half acre. Alley access to the backyard, perfect for a shop set up or check with the city about the possibility to divide. Great possibilities!
For additional information about this 2,040 Square Foot, 3 Bedroom, 2 Bath property located in Keizer, Oregon, please fill out the Request More Information form.

 

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Listing courtesy of COLDWELL BANKER MOUNTAIN WEST.

1214 Bair Rd NE Keizer Oregon

1214 Bair Rd NE
Keizer, OREGON 97303
Price: $239,000

3 Bedrooms, 2 Bathrooms
1512 Square Ft

Listing # 651224

Lovely 1 owner custom built home. Situated on .35± acre lot with space for an RV…and more! 9′ ceilings, crown molding in almost every room. Large covered patio, wrap around porch in front. Canadian Maple floor in kitchen w/beautiful Maple cabinets. Amazing garage with room for 4 cars, hot water faucet, pull down storage, fully insulated. Bed #3 or den does not have a closet.
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Listing courtesy of PRUDENTIAL REAL ESTATE PROFESSIONALS.