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Refinancing a Connecticut Mortgage
| Jim and Kelly D in Southbury, CT
"We wanted to let you know what a blessing you and Acorn Home Mortgage were to us. We have owned our own business for 27 years and have had our share of struggles. We needed to refinance to get back on our feet but we weren't sure that it was posible. We have been small business owners and have had our challenges over the years. Not only were we able to get some equity out of our house but you and your staff made it one of the most pleasant experiences we've had dealing with our finances. You went over and beyond at all times. The follow up was amazing, we always felt informed and included. Yet when we hit an impass your experience and knowledge of the business took over and handled things beautifully.
You have given us suggestions on maintaining our finances better that have already proven to be very valuable. We can't thank you enough for all that you and your staff at Acorn Home Mortgage did.
Thank you so much"
TO REFI OR NOT TO REFI…. THAT IS THE QUESTION!
With over 3 trillion dollars worth of ARM’s (Adjustable Rate Mortgages) currently held by millions of today’s homeowners the question of when to refi is ever present. If we only knew what rates were going to do, we could all sleep at night and not worry.
So what can a consumer do about understanding where they stand with his or her current Adjustable Rate Mortgage? There are several factors that you should investigate in order to determine if it is time to refi.
What is the start date of your current mortgage? This information can usually be found on the monthly statement.
What is the term of this adjustment - 3, 5, or 7 years? This information also should be on your statement. It tells you when your current rate will adjust.
What is the maximum % for the first adjustment? Most adjustment percentages were 2% per year with 6% program cap. For example, 5.25% would jump to 7.25%. For $100,000, this means your P&I (Principal and Interest) would jump from $549.80 to $678.08 or $128.28 per month. Over one year this would be $1,539.35.
Is there a pre payment penalty? This information would be spelled out in your mortgage document that you signed at the closing. This may be approximately 6 months worth of interest.
How long are you planning to stay at your current residence? If you plan to move within the next 6 months, you should calculate the cost to refi versus letting the loan adjust to its’ new rate. Then you can decide which option is cost effective.
Do you currently have a Home Equity Line of Credit? The prime rate today is at 7.5% and all indications are that there will be one or two more adjustments. So, what does that mean to you? Based on a $50,000 loan a monthly payment would be $312.50 at 7.5%, this would increase to $333.33 at 8.0%.
Do you have any credit card debt, which should be consolidated? If you refi this debt it will also reduce your monthly expenses. With the legislation, monthly credit card payments have doubled in many cases.
Should both mortgages be rolled into one stable payment? We can review your current situation and see if refinancing is a good choice for you.
If you have any Connecticut Refi questions, please contact us for a more complete analysis via secure email or call us on 203 682 0246. At that point, you will be able to decide to refi or not to refi.
Click Here to Download the
Connecticut Refinance Mortgage Application