Mortgage Planning Ideas

"Should I refinance?". It seems like a basic question -- when benefits outweigh costs, say "yes". But, what about those two big assumptions you have to make?

It's an excellent time to lock a 15-year fixed rate mortgage. Versus comparable 30-year loans, conforming 15-year mortgage rates are "on sale" -- and cheap.

ARM-holding homeowners tend to panic when their mortgage gets set to adjust; the feeling of "I better do something fast!". If that's you right now -- if you have a conventional ARM getting set to adjust -- just relax. Your mortgage rate could fall to as low as 3.000 percent and that's good. At least, *this* year it is.

The good thing about closing costs is that they're negotiable, in some respects. You can't avoid paying underwriting fees or taxes to the government, for example, but you *can* arrange to have loan costs paid on your behalf. It's called a "zero-cost mortgage". But, there is a trade-off.

Versus last year, the cost of carrying a 30-year fixed rate mortgage to full term has dropped by $67,000. Do your refinance, apply the savings back to your loan, and pay off your home faster.

Versus last year, the cost of carrying a 30-year fixed rate mortgage to full term has dropped by $67,000. Do your refinance, apply the savings back to your loan, and pay off your home faster.

Versus last year, the cost of carrying a 30-year fixed rate mortgage to full term has dropped by $67,000. Do your refinance, apply the savings back to your loan, and pay off your home faster.

Versus last year, the cost of carrying a 30-year fixed rate mortgage to full term has dropped by $67,000. Do your refinance, apply the savings back to your loan, and pay off your home faster.

The mortgage rate differential between comparable 15-year and 30-year fixed rate mortgages is close to the largest it's been in over 5 years. "Going 15" saves a homeowner $170,000 over the life of a loan, assuming a $300,000 loan size. That's enough cash to send several children to college, among other things.

Versus 1 year ago, the cost of carrying a 30-year fixed rate mortgage to full term has dropped by $60,000. Even as the required closing costs are rising.