Lincoln Savings Bank offers a free mortgage examination to see if a borrower can benefit from refinancing to better terms. Just as every year you should get a medical check-up to be sure you are maintaining your health at optimum levels, likewise you should be obtaining a professional financial checkup to make sure you are maintaining your best mortgage options. It may benefit you greatly to refinance now.
In many cases home owners in Ankeny, Ames, Des Moines and across several counties in state of Iowa have saved hundreds of dollars by refinancing their mortgages into shorter terms, elimination of MI, lower interest rates. Additionally, home owners have made some great improvements to their properties, such as finishing the basement or adding a swimming pool or replacing the roof by refinancing their current mortgages.
For example, if you have been paying $1000/month on your mortgage for five years and 80% of that is going towards interest you could save approximately $48,000 by refinancing in to a 20 year loan. [30 – 5 years into the loan – 20 = 5 years shaved off] [$800 x 5 years x 12 months = $48,000]
With the new tax laws many home equity loans are no longer tax deductible. But you can still access the equity in your home for home improvements by refinancing. You simply increase your current mortgage by the additional amount needed to make improvements. For example, you want $15,000 to finish your basement and you currently owe $100,000 on your mortgage. The home is worth $150,000 on today’s market. You could refinance your home for $120,o00, pay off the current mortgage and all the costs and have the cash you need to finish your basement and increase the value of your home so you are still in a strong equity position.
We’ve recently helped many homeowners eliminate their monthly mortgage insurance (MI) by refinancing, especially when paying off a FHA loan. For example, say you put down 5% when you purchased your home, 3 years later the principal balance is lower and if the value has increased so now your loan-to-value is less. We can pay off the FHA loan and roll any remaining MI into the loan upfront. Even if when the interest rate is higher we can often save you $100 or more each month by eliminating the monthly MI through a refiance. Say you sell the house in 5 years, you’ve saved $6,000 in monthly payments during that time in this scenario.
In many cases this has been accomplished with no closing costs paid by the home owner and in most all cases with no money being brought to the closing table. We usually offer several different loan options to give you the best possible solution. If there is no advantage to you in refinancing your home, we help you see you are in the best possible position where you are. Bottom line, the mortgage check-up is like your preventative physical at the doctor, no out of pocket costs to see how financially well your current mortgage is!
In summary, you might be losing hundreds of dollars in your monthly budget or long term financial goals by not taking a look at your refinance options. Get a free financial checkup today on your mortgage.
Ready to see your potential gain? Give us a call at 515-327-9938 or fill out the short form above to have a loan officer contact you today.