Portland
Oregon Real Estate - Live Green...Live Well!
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Patrick
Smith, MBA, AHWD
Eco Broker Certified
503-421-3824
Licensed in the State of Oregon
CONTACT PATRICK
4001
NE Halsey Street, Suite 100, Portland, Oregon,
97232
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Should I Refinance My Portland Property? In a previous blog I questioned why first time home buyers and others were not out in droves purchasing Portland real estate with interest rates being at fifty year lows. If the message has not reached potential home buyers it has certainly reached the attention of those who already own a home. Consistently, each lender with whom I have spoken has stated they are inundated with applications from current homeowners who are refinancing their Portland properties. And, many of my clients have been contacting me within recent days to ask if it would benefit them to refinance. Of course, there is no single answer to fit all situations.
If you are considering the potential benefits of refinancing your Portland property take into account a few rules of thumb before making a decision:
1. Check with at least two different lenders prior to locking in to a new loan. This applies not only to refinancing but to purchases of any Portland real estate. Remember the old adage, “It pays to shop around”.
2. Determine if your new interest rate is at least one half of one percent (0.5%) lower than your current interest rate.
3. Be sure you intend to hold your Portland real estate for a minimum of another two years.
4. Finally, based on the Good Faith Estimate provided you by the lenders with whom you inquired, will the reduction in monthly payments be able to cover the costs associated with refinancing within the first year of the loan?
For a fast, general picture of what your new payment will be with a lower fixed rate utilize the mortgage calculator on my website. Simply plug in the new quoted interest rate, length of the loan, total new loan amount, property taxes, and insurance and you will see instantly what your new monthly payment will be!
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