“Should I refinance my mortgage?” This is certainly one of the most popular questions of 2008 . . . maybe 2nd or 3rd only to “Who do you think it will be, Obama or McCain?” and “is the 3G network really that much better on the new iPhone?” Well, I don’t have the answer to the other questions (speculatively, I would say – I have no idea and it’s still a phone, right?), but I do have the answer to the first question. Should you refinance your mortgage? Yes. Yes, you should refinance your mortgage.
Seems simple enough, right? Well, actually, the follow up question to “Should I refinance my mortgage” is the key to the whole thing – “When should I refinance my mortgage?” The answer: you should refinance your mortgage once the cost of the refinance can be reasonably expected to be recouped over time by the amount of monthly savings based on how long you are planning to stay in your current house (or at least keep your mortgage). You see where this is going . . . more questions. “Well, what is the cost of doing a refinance?” and “How long are you going to stay in your current home?” “And if it is a good idea for me to refinance now, is there a chance that rates will go lower, and maybe I should wait???”
Bottom line — because mortgage rates change daily (and in the past few months, they have been changing mid-day as well), and because closing costs and interest rates differ based on your loan amount, your loan-to-value (how much un-mortgaged equity you have in the house), your credit score and a handful of other factors, when to refinance your mortgage is really a combination of knowing when it makes sense to refinance (at what rate) and knowing when it’s time to refinance (based on market conditions).
On January 15th, mortgage rates dropped — down to 5.25% or even 5.125% for a 30 year fixed rate loan — only to jump up by 0.5% or more by the end of the day. Because of the quick move in the market, many consumers (while trying to figure out the “best deal” and trying to sort out different options — 0% origination, points vs. no points, etc.) missed out on the best mortgage rates in years. To prevent this from happening to you (or from happening to you again), you need to know two things. 1. At what rate should you consider refinancing your mortgage. And 2. When that rate is available.
If only there were a system out there . . . aaahhhhhhhhhh [insert angelic singing and bright lights].
myRateTrack.com is a new service that allows consumers to manage their refinance options with the expert advice of their mortgage professional. The system includes RateTrack refinance reports (a refinance report specific to your loan), and it allows consumers to set a target refinance rate. When the target refinance rate is availble, both the mortgage professional and the client are notified that it’s time to refinance (or at least quickly consider the option).
If you are a mortgage professional — and lost even ONE loan on January 15th — don’t let it happen again! Check out our website for more information on getting set up your myRateTrack.com account.
If you are consumer and are interested in the service, tell your mortgage professional to get you signed up (for FREE)!! And then you’ll know for sure — 1. At what rate you should consider refinancing your mortgage (it’s about a 10 to 15 minute conversation with your mortgage consultant) and 2. When that target rate is available. Don’t wait until mortgage rates dip down to have that conversation. Get ready by finding out now when you should refinance; set your target rate in the system . . . and you’ll be ready to refinance when the time is right.
And then the question of the year won’t be “Should I refinance my mortgage?” but “Have you heard about myRateTrack.com??”
myRateTrack.com is a web application system for mortgage professionals — to market to past clients and new clients — by keeping them READY and “in the know” with their refinance options. Once SET up, the myRateTrack.com system generates and delivers (via email) detailed, customized, customer-specific refinance reports to clients (also available instantly). The RateTrack report is branded with the mortgage professionals personal information and is customized with their rates and closing costs. They system also includes a Target Refi Rate Notification System and a feature to offer advertisement space to Realtor and referral partners. For more information, visit www.myRateTrack.com. Ready. Set. Refi.
