Dallas Home Mortgage Assistance

It’s pretty clear these days that the Dallas refinance, as well as the purchase market, is getting ready to heat up.

Over the past 30 years, Dallas mortgage interest rates have ebbed and flowed massively in a financial tide of home loan offerings. Near the beginning of the 1980s, for example, mortgage rates for regular 30 year, fixed rate mortgages were roughly 18%. In today’s market, though, we are seeing interest rates for the identical type of loan about five percent – and occasionally, in the 4% range.

A lot of Dallas home owners who purchased when rates were much higher are now seriously considering a Dallas refinance so as to reap the benefit of today’s lower rates. If you are among these people, know that there are some expenses involved in refinancing your home, such as an appraisal, title insurance, and a mortgage origination fee, just to name several. To figure whether these expenses will off set with the possible cash you may be able to save by refinancing your loan, you can use the basic rule of thumb called the 2 percent rule.

In basic English, this rule suggests that the difference in percentage between your current interest rate on your mortgage and the new interest rate being suggested should be at at a minimum two points. That suggests that if you were amongst those borrowers in the 80s who received a rate in the double-digits (and now you can secure a rate in the neighborhood of 5%), it would make very good sense to refinance.

Listed below are three advantages why people are refinancing in Dallas with a lower rate:

1) Make your monthly payments lower – By reducing the interest rate of your mortgage, you can see a dramatic difference in what you pay for your mortgage each month. And, every little bit helps. Some people who refinance have saved thousands and thousands of dollars over the course of their loan period. How much you will save, though, totally depends on your specific numbers. So, be sure to speak to a mortgage professional who is able to do the number crunching for you to determine how much you will be able to save with a refinancing.

2) Changing the type of loan you hold – Some people choose to refinance in Dallas even if they won’t save any cash by doing so. Think of the large number of folks who got an adjustable rate mortgage. seeing many of these folks refinancing just to switch to a fixed rate mortgage. At the same time, some folks who have a balloon payment worked into their mortgage are choosing to refinance as it gets nearer to the time to make that bulk payment.

3) Getting cash from your equity – If you’ve lived in your house for 10 years or more, there is a good chance you have a good bit of equity coming from the overall Dallas home appreciation (even with the current dip in house values) and to the fact that you’ve been making those monthly payments for quite a while. For this reason, some home owners choose to withdraw money out when they refinance their mortgage loan so as to aid with retirement or with their children’s college expenses.

If you are contemplating refinancing your Dallas house, be certain to talk to a professional mortgage specialist – someone with a lot of experience specifically in refinancing who can talk to you and go over your situation and your numbers and the the different choices you have. And remember, that each situation is unique. Your mortgage lender should ask to go over short-term and long-term benefits (or consequences) that are unique to you and targeted towards your personal financial future.