Rates are currently at historically low levels. How long will rates stay this low? There is no exact answer to that. Rates have continued to stay at these low levels for several reasons, including, but not limited to, focused ongoing investment in “safe” securities (like bonds), and the continued uncertainty of the European debt crisis.
In order to determine if it makes sense to refinance and lock in these low rates, there are a few questions to address.
> What are the closing costs to refinance?
Contrary to popular belief, the closing costs on a refinance are primarily determined by the property type, whether it is a coop, condo, single or multi-family home. Depending on your property type, I can give you a quick run down of specific amounts and what to expect.
> When can I benefit from the refinance?
The main benefit of refinancing comes in when the closing costs have been covered by the new monthly savings, which continue on from that point. I can help you determine how much less you can expect to pay each month, and how long it would take for that savings to cover the closing costs.
> Is it worth the process and the paperwork?
The process is worth it depending on how much can be saved each month. The main paperwork to refinance is simple and straightforward. The process primarily requires copies of tax returns, pay stubs, and bank/mortgage statements. I will work with you to streamline the process and the paperwork to make refinancing as easy as possible.
There is no cost in talking to me to get the important information you need to determine whether to refinance or not, and I am happy to help you choose your best course of action.
I look forward to speaking with you, Jim
