Glendora,

As the rates come down to historic lows, their are some misconceptions floating around. These low interest rates, which are in the 4% range make sense for many borrowers but not all.

I have recently received a sworm of calls from past clients as well as referrals. Many of these homeowners are currently in the 5.5%-6% range. Their question is simple, how much will I save by refinancing to get to these lower rates?

The answer is varied depending on many factors. These include how long you have been in the current loan, how much the loan amount is for, are you getting cash out and how long you would plan on owning the home. These matter because of closing costs associated with doing a refinance. Even though you plan on lowering the overall interest rate, you must take into consideration the loan amount being higher with closing costs factored in.

For people with mortgages less than $200,000, any interest savings will most likely be a wash with the closing costs. So, the answer is simple, the more you owe on your mortgage, the better chance you have of saving with a lower interest rate. Call Clearview Mortgage and we can help you determine if a refinance is in your best interest.

Call today at 626-533-3123