Economy Sets The Stage For Owners
Oceanfront La Jolla Homes
The economy is going through a rough patch, and the stock market is well
below its all-time high. Mortgage rates have been dropping since the end of
last year. For owners of oceanfront La Jolla homes, that can mean that it's time
to think about refinancing your mortgage. If you can save on the interest
you're paying, then it's time to do a mortgage refinance on your oceanfront La
Jolla homes.
- For some homeowners whose adjustable-rate
mortgage (ARM) interest rates are rising, the low interest rates on 30- and
15-year fixed-rate mortgages offer an opportunity to refinance into something
that's a known quantity.
- If you have a mortgage that's going to adjust,
it's important to get into a fixed-rate program now.
- In Freddie Mac's latest survey of mortgage
rates, a 30-year fixed-rate mortgage averaged 5.72 percent with fees totaling
0.4 percent. A 15-year fixed-rate mortgage cost an average of 5.25 percent,
plus 0.4 percent in fees.
- A year ago, a 30-year mortgage cost an average
of 6.3 percent, up more than a half percent, while the average 15-year mortgage
cost 6.03 percent, nearly a full percentage point higher than what is available
today.
- Should you do a mortgage refinance now? Or, wait
to see if interest rates drop further?
Conventional wisdom used to say that if you could shave 2 percentage points
off of your interest rate, you should refinance your mortgage. But today, with
zero-cost mortgage refinance options widely available, it may make sense to
refinance if you can shave a half point off the interest rate you're now paying
-- without lengthening the loan term.
When you refinance, the goal should be to lower the amount of interest
you're paying, either by lowering the interest rate or shortening your loan
term.
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