Refinancing Can Help Build Your Nest Egg

Refinancing Can Help Build Your Nest Egg

Refinancing Can Help Build Your Nest Egg

Everyone knows that interest rates are at an all time low. Now with some of the Federal programs even those borrowers who owe more than the appraised value should be able to refinance. Starting in December 2011 the Harp 2 program will be available.

Here are two examples of the financial benefits of refinancing and why you should make this a priority on your do list. 

1- If you currently have a loan amount of $300,000. with a interest rate of 6% you are paying approximately $1798 per month (principal and interest only). With the example below you could be saving as much as $400 a month if you went from a 6% interest rate to a 3.75%.

• $300,000 loan amount at 5% = $1,610 per month savings of $188. (PI only)
• $300,000 loan amount at 4% = $1,432 per month savings of $365. (PI only)
• $300,000 loan amount at 3.75% = $1,389 per month savings of $408. (PI only)

2-  If you refinance from a 6% interest rate to a 4% interest rate and put $300 of the interest payments that you are saving into a modest investment account each month at the end of 30 years you could have accumulated an estimate of $208,215. This would be based on compounded interest with a modest rate of 4%. *See the chart for different rates of return.

So what are you waiting for? Why not start the new year with a resolution you can live with all year!

*The Saving or Investing Chart was provided by Joshua A. Strange, Financial Advisor with the practice of Glenn C. Moore, CFP, ChFC, CLU an Ameriprise Platium Service practice. For investment advice please contact Joshua A. Strange or Glenn C. Moore 703-330-3688.

The information provided is informational based on interest rates today 12/6/2011.

interest rates change on a daily basis, sometime several times a day. Call for today's current rate 703-330-4423

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