KEY
POINTS

• Regardless of your current rate, even a small decrease such as 1/4% can reduce your payment substantially. By lowering your rate but continuing on with your same payment amount shortens the remaining term by years, saving you thousands

• Talk to your Loan Broker Today about any available REFI opportunities to save you money

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Have you ever wondered if it’s worth refinancing your home loan when the rate dips just a little, say, 1/4%?

Let’s do the math using the sample below..

• Current Loan Balance: $580,000
• Current Interest Rate: 6.75%
• Payment $3,891.16 – not including tax or insurance
• Remaining Term: 325 months (27 years)NEW REFI LOAN
• New Rate: 6 1/2%
• New Payment: $3,666
• New Term: 360 months (30 Years)

New Vs. Old Savings

The monthly payment is reduced by $225. On the flip side, the loan term has been extended by 3 years. OR HAS IT?

If the new terms are accepted but the borrower simply elects to simply continue making the same payment amount as on the old loan – $3,891.16, the new refinanced loan would be paid off in 305 payments thus reducing the original remaining term by 20 payments. That’s an overall savings of $57,823 over the full term.

Numbers don’t lie. If anyone wants truly pay their home loan off sooner, when refinance opportunities exists, this is a really good way to do it.

Call your Mortgage Broker Today and ask if there are any available refi savings opportunities you should know about.