New Orleans Interest Rates fall to lowest level in 37 years, Time to refinance? Get out you calulator ! Save some Money
It is certainly time to think about saving money by refinancing your loan on your New Orleans condo. Especially if you plan on owning it for more than a couple of years. The cost to refinance your loan on a 200k mortgage for a condo is about two thousand dollars. The only variable is the title Insurance which varies with the amount of the loan. Make sure you keep your title policy as the reissue rate is a big savings. Its is well worth looking into the numbers. Your condo fees and taxes stay the same.
Lets look at some numbers. If your current rate is 6.25% and you can get 4.75% then your monthly payment per 100k drops from $616 to $521 which saves you $95 per month. This is principal and interest. On a 200k loan your savings would double to about $200 per month. That is $2400 per year which is over the break even point for the closing cost associated with the lower rates. So if you are planning on staying in New Orleans its money in your pocket.
There is no way to know how long these rates will be around but have a feeling it may be a couple of months before heading up again. If you are buying this gives you a larger budget to spend or a much cheaper note. There is still available those seasonal discounts that will be going away once everyone figures this out.
Feel free to call Julie Baudier 504-583-1793 and ask her what you need to do and how it will benefit you. Its not always that easy to get $200 more in your pocket by making a call. If your rate is higher then you save more. You must have good credit, but 95% of my buyers have had excellent over the past 3 years had great credit in my condo markets. Out of last 200 sales I had one sub-prime loan and only a couple of adjustable loans.
The other odd thing when you do the number is with the lower rate of 4.75% your principal is getting paid down $126 per month. At the 6.25% rate the principal is being lowered by only $95 in the first months. I had to do this several times to be a believer. This means you are building equity faster at a lower rate as less goes to interest in the beginning. An equity bonus so to speak!