Refinancing to a Shorter Loan Time Frame

Refinancing to a Shorter Loan Time Frame

Changing the length of your mortgage time frame can save you big money. Interests rates are still very low and if you haven't reaped the benefits of Refinancing your home to a 3.5-4.5% interest rate, Do it! Many people refinance their home with another 30 year loan. But while you are talking to your lender, see if choosing a shorter time frame on your loan may save you money and possibly keep your payments close to where they are now.

 
I know you like examples like I do and I think this paints a vivid picture:
A current loan on your home of:
$400K at 5.75% interest for 30 years is $2,334.29 monthly

Refinancing the same amount for a lower interest rate and shorter terms looks like this:
$400K at 3.75% interest for 20 years is $2,371.55 monthly.

By adjusting the interest rate and the length of your mortgage you are paying almost exactly the same amount monthly, but the 10 years you took off the loan time frame has saved you over $271,172.13 in interest payments. $ 97,713.67 was saved in interest by doing a 20 year loan and $173,458.46 was saved by refinancing to a lower interest rate.  Isn't that Incredible!

Use my mortgage calculator to see what your monthly payment could be with a shorter time frame. Talk to your lender today to see if you qualify to do a refinance and if you can lower your length of the loan. Contact me if you need a lender referral. You will save yourself Mucho Dinero!

Remember, I'm always available for any of your referrals. Contact me today!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Refinancing Your San Luis Obispo Home Today Could Mean BIG Savings

Refinancing Your San Luis Obispo Home Today Could Mean BIG Savings

I'm sure you've heard interest rates are low and dropping. But what does that mean to you? Why should you care? By doing a quick mortgage calculation to see what your savings could be, it could mean extra money monthly for you and your family. I recently had my home refinanced (a Refi) and I'd like to to fill you in on the financial benefits.

We live in San Luis and our mortgage loan wasn't bad, 5.375%, but the interest rates that are currently available are like borrowing free money. There are rates in the low 3%'s that could save us hundreds of dollars a month. Here's a simple example to show you how a small drop in two percent of our mortgage interest saved us a ton of money.

On our mortgage loan of $400,000 for 30 years at 5.375% our monthly mortgage, not including our Property taxes, was $2,239.88. The loan for the same amount at an interest rate of 3.375% our monthly mortgage is now $1,768.38. The 2% difference in the interest rate is saving us monthly $471.50.  That is a large amount of savings a month!

A good rule of thumb is if your current interest rate on your home is more than 1% higher than the current rates, it's financially worth it to Refi your home. You have a loan for 4.25% and rates are currently at 3.25%, call your broker. Many brokers can also give you estimates on what your monthly savings would be and what the cost is to Refi. On our Refi the cost to do it was added into the mortgage loan so we had no out of pocket expenses. A huge plus. Call your mortgage broker today to see if you can save money on your interest rate. You will be so glad you did.

If you are looking for a great Mortgage Broker to help you with your Refi, please email me for a referral in your area. I'm here to help!

Click here to access a link to a Mortgage Loan Calculator to see how much you can save! You're Welcome...

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Refinancing Your San Luis Obispo Property...

Refinancing Your San Luis Obispo Property... 

San Luis home owners who missed the refinancing opportunity when rates were in the high 3%'s should consider refinancing in the next couple of months to lock in a lower rate. Interest rates are still at an all time low and the opportunity is presenting itself again!

Kevin Hauber, Senior Loan Consultant with iMortgage here in San Luis Obispo says;
"Current loan limits in San Luis Obispo County allow for high balance loans of up to $687,500 for conventional and FHA loans on one unit properties.  Those limits will go down effective October 1st to $561,200.  It is important for any buyers or those wishing to refinance with a loan amount between this new limit of $561,200 and the current limit of $687,500 to conclude their transactions before the change becomes effective.  After that time, higher balances will be considered Jumbo loans and subject to different criteria and pricing."

For more info on Refinancing your San Luis home call Kevin Hauber (805) 597-8844




For more information or questions on Real Estate give Traci a call 805-235-6396 or email me.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 Patterson Realty traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Top 3 San Luis Obispo Buyer Questions

Top 3 San Luis Obispo Buyer Questions

I have noticed that there have been reoccurring Realtor questions from my San Luis Obispo buyers in the past couple of transactions I have done. I have also heard these questions at Open Houses or just in casual conversation. I thought I would address them and give my best answers for each.

1. "If it's possible prices haven't hit bottom yet why, should I buy now?"

My response: While price is a major concern for anyone selling a home, cost should be you primary concern as a buyer. This means you need to take into account what your monthly payments will be, considering not just the price of the home but also your interest rate of your mortgage and property tax amount. San Luis is 1.125% of the purchase price. Inevitably interest rates will increase, making the amount of home you can afford go down. 
See my blog post "Cost vs. Price" for an expansion on how interest rates effect your "buyability"


2. "When will we see appreciation if I buy a home now?"


My response: Appreciation varies by your local market and you would need to look at local pricing trends. Nationally there are indicators that are feeling positive about 2011 and where the market is going. The National Association of Realtors projects a slight increase nationally of 0.5%. Another company that did a National Home Price Expectation Survey showed that experts think prices will begin to build beginning in the second half of 2011 and a cumulative appreciation of more than 10% between now and 2015 nationally.


3."Does buying still make better sense than renting?"

My response: It depends!... Most people buy a home for reasons other than financial. They may want security in their housing situation. They may want to be able to control where they live and be able to do more with their home. I ask them, "What non-financial benefits would your family have to buy a home instead of renting?" The bottom line is it has to be the right timing and make sense to you and your family to do it.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Cost vs. Price - What higher interest Rates can do to your purchasne power

Cost vs. Price in San Luis Obispo - What higher Interest Rates can do to your purchase power.

A good rule of thumb is for every 1% increase of interest rate there is a 10% decrease in purchase power. It's surprising to most buyers. This new year is going to bring many new opportunities to find a home. If you are still possibly considering a purchase you may want to know this very important particular bit of information.

The higher interest rates go, the less home you and your family will be able to afford, finance or purchase. If you were looking at property in the $500,000 range and interest rates were at 4.23% now they will eventually steadily be going up to 5.23%, meaning that if you wanted to keep your mortgage payment the same you would only be able to purchase a $450,000 home. Even with a 1/2% change in interest rate it can effect your purchase power greatly. I recommend getting back into finding a house as soon as possible to get the most house for your dollar, before interest rates go up and property prices stay the same.

Please see this example to show your buying power depending on what interest rate you lock your loan in at.

As a buyer it's vital to know your market and what options you have. I'm here to guide you through the process. If you have any questions about this I would be happy to explain it further.

If you are interested in looking for a home in the San Luis Obispo County area, please call me or email me I'd be happy to help.
 Traci

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082