This mortgage refinance post has a very weird title, and some might think how dumb it would be to refinance just so you can skip a mortgage payment to save for Christmas shopping. That is not quite it. This post is for those home owners that already have a pretty good idea that their current interest rate is high enough that today’s rates incorporated in a refinance would save them tons of money over the next coming years, but need more motivation. The overlay is, it’s not enough for some people to just make a great savings on their monthly payment, but they need more motivation. So many people are just content and rolling along in their busy schedule, even though they know that $100 a month savings adds up to $1,200 a year and $6,000 over 5 years, and that is a lot of money, but they just cannot see themselves starting the process.
Lets say you have a home in a local Collin County city like Frisco, Plano, McKinney, Richardson, or Allen. Maybe your rate is fixed currently at 5.25% or higher. Here is the breakdown of savings if you refinanced to today’s low rates around 4.25% fixed at some different ranges:
$200,000 loan – savings per month = $121, $300,000 loan – savings per month = $181, $400,000 loan – savings per month = $241
So let me break it down for you. Closing costs are going to be as low as $3,000 if you are closer to the $200,000 loan and as high as $6,000 if you are more near the $400,000 loan. Do the math and in all cases, you are benefiting from your refinance after end of year 3 or start of year 4 and saving thousands upon thousands year after year from there.
Use the timing of the year, where you already know that a refinance is right for you, to recognize the opportunity to spend cash on your Christmas gifts rather than load it all on a credit card that takes you half the year to pay off. Dave Ramsey would be proud. If you start the refinance now and close in October, you can skip November’s mortgage payment and do your shopping in November. What ever you normally pay in your monthly mortgage payment, you now have that much extra cash to put toward shopping. If you want to close in November, we can start now in the refinance and we can close you in November before your November payment is late (mortgage payments are due on the 1st and late on the 15th), so you don’t have to pay November’s mortgage payment, and then you skip December’s payment as always after a refinance or purchase (skip the following months payment after closing) and you essentially skip two months mortgage payments that you can use toward Christmas shopping.
Call me and lets get started now. It should take 20-25 days from start to finish and we can structure your refinance where you come to closing with no money out of pocket. If your rate is above 5.75% or 6%, ask me about the NO COST REFINANCE.