How refinancing could save you tens, if not, hundreds of thousands!
Did you know that 60% of first-time home buyers only put down 5% as a down payment on their home (NAR research)? That means that 60% are paying PMI until they reach 20% in equity.
When we purchased our last home, we put less than 20% down and were forced to pay “PMI” or “private mortgage insurance”. We knew that were going to do some updates to the home in the coming months, so once we finished, we called our lender and requested
an application to “refinance”.
Our home successfully appraised higher and we were able to prove that we had at least 20% in equity AND we were able to snag a .5% lower interest rate! I know what you’re thinking, “.5%!? Surely it’s not THAT big of a difference”. WRONG! Combined with
the savings of no longer having to pay PMI, we are now paying a monthly mortgage payment that is about $250 less per month!
Here’s what $250 per month = $3,000 annual savings, can do for my family:
· Annual Disney trip!
· Retirement fund over the next 30 years compounding at 7% = $300,000
· College savings fund over the next 15 years compounding at 4% = $60,000
If you’d like to see if the value of your home has increased, OR, if you’d like a recommendation on the best lenders to reach out to, Click Here