Joe bought his townhome a year ago. He barely squeaked in with his 10% down and was bummed to have to pay PMI but bit the bullet. He said at age 55 it was finally time to own a home even though he didn’t have the 20% down he had hoped to have. He had a 700 credit score but that gave him a pretty high PMI factor. $250 per month.
If you remember interest rates were going up almost non-stop last year and in May 2018 he got a 4.75% 30 years fixed.
Now rates are 1% lower at 3.75% for this kind of loan, lower if you have a smaller balance.
So we looked up the new value of his home and even though he doesn’t have 20% equity yet, it is still worth refinancing to 1 loan with new PMI and save $400 per month or do 2 loans and save $500 per month.
He is thrilled!
If you know anyone who bought last year or in the last 2 years and thinks it’s too soon to refi have them call me. This might be the sweet spot in rates to move quickly on a refi.
If you know anyone who got turned down or is afraid of being turned down for a loan but that you know could benefit hugely from a refinance of their home, please introduce us. It’s a free call and it might just change their lives and help them stay in their home.