Looking for the very best mortgage rates today? This is not exactly real estate investing related, but the topic directly touches so many of us, I just had to share! If you, a family member, a close friend, hell – even an enemy are looking to re-finance a mortgage, you need to check out yet another great product from the masterminds at Google.
Its called Google Compare Mortgages and its right HERE <—– and I friggin’ love it!
My wife and I are looking to re-fi our 30 year mortgage with a 5/1 ARM because we’re pretty sure we can have our existing mortgage paid off in less than 24 months. We’re currently in a 30 year fixed at 6% with a payment of about $1280.00 per month (principal & interest). Refinancing to a 5/1 with NO points and ZERO dollars in bank closing fees, our new payment will be somewhere close to $680.00 (principal & interest).
The rate by the way is an astoundingly low; 3.5% (fixed for 5 years) How did I track down the best deal? Google Compare Mortgages. What a great free tool.
Now, I would not be doing you a good service if I did not tell you to be very careful when refinancing a mortgage. You must be VERY careful not to pay too much for the loan. So, how do you really know how much your new loan is costing you?
Let’s say you owe $200,000 on your existing mortgage. When you re-fi your mortgage, generally speaking all the costs of doing the loan (except for the appraisal) are rolled directly into your new mortgage balance. Those costs might be points, bank fees, title fees, city state and local fees, etc. So, that $200,000 balance can easily become $205,000, 210 – perhaps even $220,000 or even higher. This is where re-fi’ing can cost you way more than its worth, and where unscrupulous loan officers can really gouge you. But it doesn’t have to be this way. First, know exactly how much you owe on your current loan before speaking with a potential lender. Once you’re armed with your payoff balance, go to Google Compare Mortgages. Pick the best looking loan, and when you speak to the loan officer, tell the new lender directly that you refuse to pay any points and bank fees. Period!
Banks are not in the business of working for free – so you’ll pay a little extra for no points and no closing costs; usually a bump in your interest rate. But the bump should not be heavy. The “par rate” (see definition) for my loan was 3.25%, my rate: 3.50%. The difference in my payment was about $18 per month, but I’m saving a little over $2000.00 in upfront fees for the slightly higher rate.
Good luck. And let me hear your COMMENTS!
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