Homeowners refinance for different reasons, but the process of refinancing a mortgage should result in some benefit to the homeowner. A borrower may choose to refinance to obtain a lower interest rate and a lower monthly payment, or change the type of loan that they have. Borrowers who started with a high-interest sub-prime loan can often reap the rewards of an improved credit standing by refinancing. Some homeowners refinance to 'cash out' and take advantage of the equity they have earned, while others may choose to refinance to shorten their loan term and build equity more quickly.
Regardless of the reason for refinancing, the mortgage consultant will need to know what the existing loan scenario entails. He/she will review the homeowner's long-term goals and provide a comprehensive spreadsheet that outlines various loan programs that will provide noteworthy benefits to the homeowner.
Bear in mind, refinancing to obtain a lower interest payment could also result in a lower deduction at tax time. The homeowner's tax consultant and mortgage consultant should work hand-in-hand with their mutual client's best interest in mind.
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Conforming
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APR
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Payment per
$1,000
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Jumbo
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APR
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Payment per
$1,000
|
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30-Yr. fixed
|
5.625%
|
5.761%
|
$5.76
|
5.750%
|
5.842%
|
$5.84
|
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15-Yr. fixed
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5.125%
|
5.352%
|
$7.97
|
5.125%
|
5.277%
|
$7.97
|
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7-Yr. fixed ARM
|
5.375%
|
5.509%
|
$5.60
|
5.375%
|
5.465%
|
$5.60
|
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5-Yr. fixed ARM
|
5.000%
|
5.131%
|
$5.37
|
5.125%
|
5.213%
|
$5.44
|
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3-Yr. fixed ARM
|
4.750%
|
4.879%
|
$5.22
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5.125%
|
5.213%
|
$5.44
|
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5-Yr. Interest Only
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5.250%
|
5.383%
|
$4.38
|
5.375%
|
5.465%
|
$4.48
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*Rates are subject to change due to market fluctuations and borrower's eligibility.
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Superior Home Mortgage Corp. licensed in DE, FL, GA: Georgia Residential Mortgage Licensee #14511, MD, MI, NY: Licensed Mortgage Banker - NY State Banking Department, NC, PA, SC, VA: Virginia State Corporation Commission License # MLB-566, & DC. Superior Mortgage Corp. licensed in CT, MA: Mortgage Lender License # MC3208, NJ: Licensed Mortgage Banker - NJ Department of Banking, RI: Rhode Island Licensed Lender & Broker, & TN. SHM Mortgage Licensed by the New Hampshire Banking Department
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Mortgage Interest Rates*
Rates as of Friday, 30th January, 2009:
6 comments • Karl Peidl - Accredited Loan Consultant • January 30 2009 10:30AM