May 4th, 2012
There is a child’s story, a nursery rhyme if you will, where a chicken named Chicken Little runs around exclaiming, “The sky is falling! The sky is falling!” This caused plenty of unneeded panic. Today there is a better announcement for chicken little. That chicken should be saying this. “Mortgage rates are falling! Mortgage rates are falling!” It is true, they are falling, and now is a great time to take advantage of these falling rates.
Lower mortgage rates don’t always mean that it is time to purchase a new house. People that currently own property can also benefit from lower mortgage rates. Lower mortgage rates are also an excellent time to lower your existing rates. You can refinance your home and enjoy some significant savings, and the savings can be felt for years to come. Take a closer look at how you can benefit from the lower rates by refinancing your existing mortgage loan.
In the example, let’s say that your mortgage payment is an even $800.00 per month. Let’s say that taking advantage of the lower rates and refinancing allows you to lower your monthly mortgage payment to $600.00. $200.00 a month may not seem like a lot of money at first, but let’s start adding it up. In year you would have saved $2400.00. Now that is starting to sound like some significant savings. Now take that years worth of savings and apply it to rest of your mortgage. Let’s say that you have ten years left on your mortgage. You would have saved $24,000! That $200.00 a month sure does add up over time.
Now is a great time to take full advantage of the lower mortgage rates. If you don’t act now, you may regret it because the falling mortgage rates can easily start to rise again.