Monday Morning Briefing
Your Monday Morning Briefing: interest rates are INCREDIBLY low right now. If you own property you may want to ask your mortgage broker whether it would be worthwhile to refinance.
What does it mean to “refinance”?
Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance: to obtain a lower interest rate; to shorten the term of their mortgage; to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; to tap into home equity to finance a large purchase, or to consolidate debt.
From Investopedia...”One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.”
For LA and Southern California it seems like most of my clients find it worthwhile to refinance even when it’s a half percent (.50%) lower. Going from 4.5% to 4.0% makes a dent in their monthly budget and they build equity faster.
Why build equity faster?
So you can hopefully be more financially independent and be more financially stable as you age. .
**this beautiful mural is located in East LA, Artist unknown***
#losAngeles #eastLA #mural #financing #investinyourself #home #realestate