Refinance Your Mortgage With a Better Rate

Refinancing your mortgage today could mean major savings tomorrow—freeing up thousands of dollars or even shaving years off your loan.
Refinancing represents a great opportunity for you as a homeowner because it allows you to pay off your current mortgage and take out a new loan at a lower interest rate. Depending on your finance goals, mortgage refinancing can help you reduce your monthly payments, and help you realize significant long-term savings over the life of your loan.

Biggest benefits to refinancing your home mortgage are:

Lowering your monthly payment—When you finalized your loan terms you agreed upon a specific interest rate (fixed or adjustable) attached to the borrowing amount. Refinancing involves lowering that interest rate—thereby reducing the amount of money you owe on the principal. See New Loan Scenario #2 below.

Reducing your loan term—Homeowners who reduce their loan term can see significant savings over the life of their loan. By reducing your loan term you are also reducing the amount of interest you have to pay your lender. See New Loan Scenario #3 below.

Long term savings—Homeownership is a long term investment and refinancing can help you save tens of thousands of dollars on that investment. See New Loan Scenario #1, 2, and 3 below.

So for example, let’s assume your current loan is:

Term: 30 year fixed rate loan
Rate: 4.25%
Original Loan amount: $400,000
Current Loan Balance: $390,000
Total payments made on current loan: 18
Principal and Interest Payment: $1967.76

NEW LOAN SCENARIO #1:

Term: 25 year fixed rate loan
Rate: 3.75% APR: 3.78%
New Loan Amount: $390,000
New Principal and Interest Payment: $2,005.11
Life of Loan Savings: $71,000
Additional Benefit: shave 3.5 years off current loan term

NEW LOAN SCENARIO #2:

Term: 30 year fixed rate loan
Rate: 3.75% APR: 3.78%
New Loan Amount: $390,000
New Principal and Interest Payment: $1806.15
Monthly Savings: $161.61
Life of Loan Savings: $22,000

NEW LOAN SCENARIO #3:

Term: 20 year fixed rate loan
Rate: 3.50% APR: 3.54%
New Loan Amount: $390,000
New Principal and Interest Payment: $2261.84
Life of Loan Savings: $129,000
Additional Benefit: shave 8.50 years off current loan term

Disclaimers:

-The scenarios above are only examples. For a breakdown of what your loan options would look like, including costs, interest savings and payment, please consult with a Blue Water Mortgage Loan Originator.
– All scenarios above are assuming a loan to value of 80%, 740 middle credit score, Single family residence, owner occupied, 30 day rate lock, debt to income ratio within program guidelines, no prepayment penalty, no balloon payment. Interest rates as of 3/24/15 and are subject to change without notice. Many other rates and programs available. Blue Water arranges but does not make loans.
– Licensed by the NH Banking Department, MA Broker License # MB1291, ME License # CSO5755, CT License # MCL1291, NMLS 1291