Thursday, July 18, 2002
More Bang for Your Buck: Refinancing Your Home
You could be sitting on a gold mine -- and not even know it. With today's low interest rates -- your house can change from a money-pit into a money-maker.
(WSVN) Your house is your castle.. but it can it can also be your bank.
That's because local property values are way up and interest rates are way down.
"Look at your home like a piggy bank and that piggy bank has $$ in it and that is the equity of your home."
Mortgage Banker Brian Scott say's "Wall Street has a lot to do with the homes on Main Street."
"Well with the stock market having the difficulties its having it's really driving that market down which is propping things like the real estate market."
And when it comes to the real estate market, timing is everything.
"We are right now enjoying the lowest interest rates in the last 3 years."
Your home can even make instant money for you just by adjusting your monthly payments.
"If you were to save $100-200 a month then thats just money in your pocket and that helps the economy as well."
If you don't need the cash right now... refinancing can also save you big bucks in the future.
Take a house with a one hundred thousand mortgage at a 30 year rate.
If you change to a 15 year rate, your going to pay 2 hundred dollars more a month.
But in the long run, you save 77 thousand dollars in interest.
Thats almost enough to buy a second home!
"That's pretty scary on how much money you are paying out interest there's a tremendous amount of money to be saved if you do it over 15 versus 30."
The refinancing can also help to repair or renovate your home.
Even Brian's taking advantage of the great rates.
"I'm planning on refinancing and one of the reasons I'm doing it is I'm planning to put an addition on my home."
And with these great rates, who can blame him.