Given the recent downturn in interest rates, many homeowners are taking advantage of the opportunity to refinance and save, but how do you know when refinancing is worth it for you?
Many home mortgage holders have jumped on the opportunity to save some cash, but there are plenty of ways to invest that money back into your home. Partners Credit Union Member Dave Yoder used the low rates to cut his mortgage term in half by investing his monthly savings back into the term of the loan, cutting 15 years off his loan.
“We moved in to a new home a year and a half ago and put down a sizeable down payment — more than 20 percent,” Yoder says. “We put $100,000 down on a $300,000 home, so we had quite a bit of equity in the home. Our home mortgage with Chase had a 30-year term with a 6.25 percent interest rate.”
When the mortgage crisis happened, Yoder watched the mortgage rates closely, looking for an opportunity to refinance for a lower interest rate.
“When the mortgage rates dropped I went online and did some research on lendingtree.com and I started getting calls from lenders,” Yoder says. “They all claimed their rates were the best, but I told them I was just collecting information. The calls started pouring in and everyone wanted a deposit to get things started. I was telling my story to a colleague when he told me about Partners. I already had a home equity line of credit with Partners, so I thought I would give it a try.
I called Partners Home Mortgage and talked to Natasha. She explained the current rates and gave me some options from the start with no nonrefundable deposit attached to it. Plus, I felt comfortable having Partners on property where I work. In the end, I refinanced with Partners and dropped my interest rate from 6.25 to 4.25 percent, and reduced the term from 30 to 15 years. On top of shaving 15 years off my mortgage term, I was able to keep the home equity line of credit I had with Partners. With another lender, I would have been forced to pay off any lines of credit associated with the loan to refinance.”
Yoder was able to get a great rate and save years on his loan because of smart financial planning. Beginning with the large down payment on the initial loan, to using his savings from the refinance to invest back into the loan, Yoder continually looked for the next best option for his investment.
“I can’t say how it could have turned out any better,” Yoder said. “Having Natasha as my primary contact and her proximity to my work location here was a huge benefit. It was easy to drop off paperwork and Partners even sent someone to have us sign off on the loan at our house.”
Many home mortgage holders have jumped on the opportunity to save some cash, but there are plenty of ways to invest that money back into your home. Partners Credit Union Member Dave Yoder used the low rates to cut his mortgage term in half by investing his monthly savings back into the term of the loan, cutting 15 years off his loan.
“We moved in to a new home a year and a half ago and put down a sizeable down payment — more than 20 percent,” Yoder says. “We put $100,000 down on a $300,000 home, so we had quite a bit of equity in the home. Our home mortgage with Chase had a 30-year term with a 6.25 percent interest rate.”
When the mortgage crisis happened, Yoder watched the mortgage rates closely, looking for an opportunity to refinance for a lower interest rate.
“When the mortgage rates dropped I went online and did some research on lendingtree.com and I started getting calls from lenders,” Yoder says. “They all claimed their rates were the best, but I told them I was just collecting information. The calls started pouring in and everyone wanted a deposit to get things started. I was telling my story to a colleague when he told me about Partners. I already had a home equity line of credit with Partners, so I thought I would give it a try.
I called Partners Home Mortgage and talked to Natasha. She explained the current rates and gave me some options from the start with no nonrefundable deposit attached to it. Plus, I felt comfortable having Partners on property where I work. In the end, I refinanced with Partners and dropped my interest rate from 6.25 to 4.25 percent, and reduced the term from 30 to 15 years. On top of shaving 15 years off my mortgage term, I was able to keep the home equity line of credit I had with Partners. With another lender, I would have been forced to pay off any lines of credit associated with the loan to refinance.”
Yoder was able to get a great rate and save years on his loan because of smart financial planning. Beginning with the large down payment on the initial loan, to using his savings from the refinance to invest back into the loan, Yoder continually looked for the next best option for his investment.
“I can’t say how it could have turned out any better,” Yoder said. “Having Natasha as my primary contact and her proximity to my work location here was a huge benefit. It was easy to drop off paperwork and Partners even sent someone to have us sign off on the loan at our house.”
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