ATLANTA – Homeowners with mortgages can save hundreds each month by taking advantage of near-record low interest rates, according to Clark Howard, Channel 2 Consumer Consultant.
According to a recent survey by Bankrate.comOne in five homeowners with a mortgage have not refinanced since the start of the pandemic, and nearly 40% do not know what their current interest rate is.
Samantha Sakali bought her townhouse in Gwinnett County in 2018. She has refinanced it twice since then. Its interest rate has dropped from 4% to 3%.
“It lets you know the difference of $ 200 each month. And as a teacher, this is a lot of money every month, ”Saikaly said.
Greg McBride is Chief Financial Analyst at Bankrate. He said Channel 2 action news that he expected more people like the Saikals to start this process.
“At a time of a limited family budget and the rising cost of so many household expenses, the opportunity to create a breather in that family budget is extremely valuable,” McBride said.
Keven Rubin is a mortgage broker at Southeastern Mortgage Solutions Inc. He said he saw the growth of his business.
However, he said Channel 2 the pandemic could have prevented many people from starting the refinancing process.
“You could refinance in the middle of refinancing and lose your job,” Rubin explained, adding that people were scared.
For most homeowners, the process is straightforward. In most cases, you will need copies of your most recent paycheck receipts, W-2s and proof of insurance to complete your application. There will also be an assessment of your home, which Rubin says can sometimes be waived.
“So, if it is beneficial, then they should have no reason not to do it. But the bank, you know, is going to take a look and ask, “What’s the use to the borrower?” There must be a benefit. They are going to not just refinance, but just refinance, ”he said.
Rubin said it is important to understand the fees associated with a loan and to study the people with whom you do business.
“Make sure that after refinancing their loan was paid, and if taxes were paid if they should, and understand who they are making their first payment to, because the loan can be sold, probably by the time they start their car. since closing, ”he said.
For Sakali, the entire process took less than three weeks. Everything except the closing was done by phone or online.
“So now is the time if you want to save money, you know, on your monthly budget,” Sakali said.
Howard said the most important step is to compare the purchases of several lenders online and conventional lending institutions, especially credit unions.
“A mortgage broker is a great place to work,” Howard said.
To easily compare rates and savings, follow the link Clark.com and use the refinancing tool.
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