First Mortgages and Refinancing

Is now the right time for you?

Each one percentage point decrease in mortgage interest rates makes housing more affordable. On a typical $100,000 mortgage, a drop of 1% in the mortgage rate equates to a monthly savings close to $60. For example: The monthly payment for a typical $100,000 mortgage at a fixed 5.25% interest rate on a 30-year loan costs about $553. While the monthly payments on the above-mentioned loan at a fixed 4.25% interest rate only costs $493 a month. This means that you may be able to obtain a large increase in your net disposable income simply by refi nancing your existing mortgage.

You may also want to look at taking advantage of the lower rates to help you gain equity in your home more quickly. If your current mortgage payment is comfortable and fits within your budget, you may be able to refinance at a lower rate and a shorter term.

For example: If you reduce your loan term on a $100,000 mortgage from a 30-year fixed rate of 4.25% to a 15-year fixed rate of 3.50%, you could cut as much as $48,456 dollars in interest charges. Now that‘s a real savings!

So, if you are interested in purchasing a house, or find yourself locked into a higher mortgage rate, want to earn equity in your home more quickly, or save money on finance charges, call Atlanta Postal Credit Union‘s Real Estate Department today, at (770) 921-7091 or Toll-free at (800) 849-8436. Or, you can review different loan products, see what your estimated costs will be and start your application process using APCU‘s online mortgage application by clicking here.