MINNEAPOLIS (WCCO) — An estimated 10.2 million Americans can benefit from refinancing their mortgage, according to professionals at First Class Mortgage in Maple Grove.
The trade war with China and global economic slowdown have contributed to decade-low interest rates. However, unlike 2008, housing values are still high.
First Class Mortgage’s Casey Van Winkle says homeowners interested in refinancing should first answer two questions, regarding how long they plan on staying in their home, and the difference in interest rates.
Van Winkle advises people who plan to keep their home for 10-or so years are in a much better position for refinancing than those planning on staying for three years. He also likes seeing a one percent saving on interest rates.
He cites a recent client, saying they were in a 20-year loan at 4.875%.
“We were able to refinance them down to 3.75%,” Van Winkle said. “Saving one percent saved them $200 per month on their size of loan. If their closing costs are $4,000, they make up or break even on their costs in 20 months. And that’s just an absolute slam dunk.”
He advises anyone interested to seek help from a mortgage professional. Van Winkle doesn’t believe interest rates will spike any time soon.
“I see this continuing,”Van Winkle said. “The only thing I can say is all it takes is one Tweet nowadays where the market can change on a dime, and so if I were someone that was looking at refinancing, I would get in line.”