With interest rates at all time lows, many are asking, "Should I refinance?."
The answer is maybe. Depending on what your goal is. Some may have a goal of having the lowest monthly payment while othersmay have a goal to payoff the loan early.
If your goal is to have the lowest monthly payment, then the answer is YES. Interest rates are at historic lows. You could save hundreds of dollars each month and have the stability of a 30-year fixed-rate loan.
If your goal is to pay off your loan and not extend the period remaining, the answer is maybe. If you have 25 years left on your current loan, you may refinance to a 20-year loan. Your payment may be about the same and you could shave off five years of payments, saving you tens of thousands of dollars over the life of the loan. Lenders are offering loans with terms of eight to 30 years at all-time low-interest rates.
Kris Gonzales works with California Real Estate Loans and has been in residential real estate for 10 years. She can be reached at k.gonzy@att.net. "Business Corner" is a partnership between San Bruno Patch and the San Bruno Chamber of Commerce that features blogs on Wednesdays guest-written by chamber members.
