Connecticut Home Refinance Mortgage Loans

Current interest rates are at an all time low. For many homeowners here in Connecticut it may make sense to refinance their current mortgage. If you think you could benefit from a refinance there are a few things to consider.

Are you going to be lowering your interest rate? The rule of thumb says you want to lower your rate by at least 1%. When you lower your interest rate you at the same time lower your monthly payment. You save not only on the monthly mortgage payment but possible tens of thousands of dollars on the interest that you will not have to pay.

How much are the closing. The costs usually include an appraisal fee, attorney costs including title insurance, lenders fees such as underwriting and processing, and costs to set up new tax and insurance escrows.

Should you shorten the term of your mortgage? Most mortgages are taken out as 30-year loans. If you qualify and can afford the payment it may make sense to refinance into a 20 or 15-year mortgage. Here the rate is usually lower that a 30-year mortgage.

Do you have enough equity in your home to do a refinance? Most people who are buying their first home put very little money down. As a result it takes time to build up equity in their home. This can be a roadblock if your home has not gone up in value. However there are programs designed specifically for people with little or no equity. HARP (Homeowner Refinance Program) allows people who have government backed mortgages to refinance even if they have little or no equity.

These are just a few things to consider when refinancing your mortgage. Rates continue to stay at historically low levels so for many it makes sense to refinance. Please call me today so I can discuss your options with you during a free consultation.

Craig Thibeau/Senior Loan Officer
North East Financial
210 South Main Street Middletown CT 06457
Ph 860-334-1354
NMLS # 398576 Company NMLS # 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com