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Home Interest Rates VS Cost
Cost Is always a factor in refinancing and is it worth Refinancing. Your total cost is the reason and why and you have to compare that against how long you will be in the Home / Loan. Now you may say that this is the last home I intend to purchase, or this will be the last loan I have on this home?
Some reasons this may not be your last home loan.
- Yes, interest rates may drop even further.
- 10 years from today you may want to update the Home (remodel) Home Improvement Loan.
- Cashout Funds to start your own Business
- Change your loan term move to a 10 or 15 year Loan.
- Send the kids to college.
- Downsizing the home is too big getting ready to retire
- Having a baby may cause you to refinance or sell the home.
As you can see life is full of change and what might happen over 30 years.
These are just some of the reasons that this 30-year loan may not be the last loan on your home. The average life span of a 30-year loan is 7 years that is what the banks use for a life cycle of a 30 year Loan.
Loans and their interest rates are controlled by long-term bonds and this is why the 10-year Treasury note is a good barometer of what interest rates will do. Mortgage-Backed securities are how the loans are traded and that will also control the functions in rate.
Refinance Cost and Current Rates
Now that you understand the life span of a Home Mortgage Loan you need to make a decision on how long that might be for you, we will use 7 years as the banks do for the cost calculations in the example. There are 3 main cost factors in refinancing Lender fees, Title company fees, Appraisal fee. We can also use a balance of 250,000 and an interest rate of 4% to show how the cost is affected. we will use title company fees of a total of $995 When Using HomePad Lending you do not have lender fees* that saves you money on your loan. Appraisal fees will be figured at $495 if the appraisal waiver is not available. Our closing cost will be $1,490 for the scenario’s, Escrow accounts are not a true cost of refinancing. Homeowners Insurance and Property Taxes are the cost of owning your home they will continue long after the loan is paid off.
The refinance on your home
250,000 your closing cost would be $1490. with a zero point rate if you’re adding in the cost of refinancing.
250,000 at a 4% rate has a base payment of $1,193.55 so if you roll the closing cost into the loan $1,490 new balance is $251,490 which now has a rate of 4% your new payment will be $1,200.66 just by rolling in the closing cost raises your payment $7.11. So excessive amounts of closing cost can eat into the amount saving over the life of the loan.
Currently, your interest rate is 5%, and the monthly payment $1342.06
Your “No Name Lender” closing cost has an underwriting fee of $995 in addition to the $1,490 making their closing cost $2,485 as a lender
New balance $252,485 payment at 4% = $1,205.41
Same numbers just refinancing with Home pad lendeing with only $1,490 in closing cost
New balance $251,490 payment at 4% = $ 1,200.41
You are saving $5 per month more with us, which is $1,800 over the life of the loan. This is oversimplified and closing sometime could be $$ much more but this gives a better understanding of how closing cost can affect your total savings.
All Scenario pricing is not reflective of any offered rates by HomePad Lending and is just an example of how closing cost will affect your overall payment per month.
(*HomePad lending will process your loan with a wholesale lender that will have a lender fee you are notified at the time of application of all fees that will be charged with your loan)
How Do I Lock-In These Interest Rates?
Request A Quote
You can Request A Quote or click the link below to get started.
We also have the ability to do a soft credit inquiry to verify programs and pricing.
No Social Security number needed for rate quote, While on the phone, you can lock your rate Today!
Request An Interest Rate Quote Via Email
Customer Service Is Number One
We are key focused on customer service. When you call you to talk to a live person that working on your loan. They will ask you for your name because you are more than just a number. You deserve a great interest rate on your mortgage to make your home more affordable to you and your family.
Mortgage rates are controlled by MBS (Mortgage Backed Securities) and just like tike the stock market moves up and down during the day.
Low Closing Cost For Refinancing Your Arizona Homes
We look for every way to save the customer money, Having NO Processing fee, Underwriting fee, or Application fee. Just another way we are making the process a lot more affordable and your not rolling thousands in your loan to reduce your refinance savings. What would your saving be if there were fewer fees in total? Yes, of course, More Savings, Please, get a No obligation quote from us, You will be surprised, We provide a written estimate with your rate lock agreement.
Just another way we are changing lending so the customer wins$$
*The Product/Program information is not a commitment to Lend. All Loans have to be reviewed By a licensed underwriter. Rates and available loan programs are subject to change without notice.
Interest Rate APR Assumptions: 510,400 Loan Amount, 760+ Credit, 60% Loan-To-Value, Single-Family Residence, mortgage rate lock period of 22 days and are only available for properties being financed in the state of Arizona.
Home Pad Lending LLC is a licensed Mortgage Broker in the state of Arizona. NMLS 1857677 AZ MB-1001528. This is not a commitment to lend. All loans subject to credit approval. Guidelines subject to change without prior notice. This information is provided to assist business professionals only and is not an advertisement extended to the consumer as defined by Section 226.2 Regulation Z.-EOE. Equal Housing Lender.
3233 E Chandler Blvd, Ste 9, Phoenix, AZ 85048 Main: 480-536-7770
Contact your loan officer for more information.