Debt Has No Holiday
November 8, 2011Thanksgiving, the unofficial start of the holiday season, is a few short weeks away.
Between Thanksgiving and December 31st, most people become very time sensitive, and the response, “after the holidays,” is used to postpone many commitments.
I suppose some things can be delayed until after the holidays – painting the bathroom, cleaning out the basement and even starting that new diet.
What about refinancing your mortgage? Answer: ABSOLUTELY NOT!
Waiting several weeks to paint your bathroom probably won’t impact you for the rest of your life, but a delay in a decision to move forward with a mortgage refinance can haunt you for the next 30 years.
Let’s run some numbers. If you currently finance a $200,000 mortgage balance at a 6% interest rate, your monthly payment is more than $1,200 per month. Taking advantage of a current interest rate of 4.5% could reduce your payment by $185 per month. A two-month delay in refinancing (until after the holidays) would require you to make two additional mortgage payments at a cost of about $2,400. Even worse, if interest rates rise to a level comparable to your current rate of 6%, you would have missed out on a monthly savings of $185 – costing you as much as $60,000 over the next 30 years.
Most homeowners choose to refinance their mortgage for financial relief – either to lessen their monthly cash outlay with a lower interest rate or to eliminate debt with a consolidation loan. Either way, it’s about eliminating or reducing debt, and debt has no holiday.
The time commitment to refinance a mortgage is minimal from a consumer perspective – most of the work is done by a mortgage professional,
so call one today, and you just may be able to get your refinance completed “before the holidays.”
Have more questions?
Call me!
Guaranteed Home Mortgage is a Direct Lender licensed by the PA Dept. of Banking
Dan Ranck
Guaranteed Home Mortgage Company, Inc.
5513 Main Street
East Petersburg, PA 17520
Telephone 717-271-2400
Toll-Free 1-888-566-1795
Fax 1-888-275-8495
NMLS # 140989
