Alpharetta - Milton Edition - July 2020

REAL ESTATE 2020EDITION

INSIDE INFORMATION

COMPILED BY ANNA LOTZ  DESIGNED BY MATT MILLS

When interest rates are low, homeowners may look to save money by renancing, which means getting a new mortgage with a better term or interest rate to lower payments. Mortgage rates have steadily declined since November 2018, according to weekly data from Freddie Mac, also known as the Federal Home Loan Mortgage Corp. Matt Frankel, a certied nancial planner and mortgage analyst at The Ascent by Motley Fool—a general personal nance advice resource—shared advantages and disadvantages of the renancing process. REFINANCING U N D E R S T A N D I N G WHAT TOCONSIDER 1. 2. Is the current market rate at least 1% lower than your existing mortgage rate? Are you planning to stay in the same home for at least 5 more years ?

HOWTO START

• Always consult multiple lenders to nd the best mortgage rate. Start with a current lender. • Multiple inquiries from mortgage lenders aect an individual’s credit score no more than a single inquiry , Frankel said.

Renancing isn’t free. … It becomes amath problemof whether the savings you’re going to get fromyourmortgage payment are going to bemore than you’re paying.

MATT FRANKEL, MORTGAGE ANALYST AT THE ASCENT

THE INS ANDOUTS OF REFINANCING

TRACKINGMORTGAGE RATES

Although the U.S. weekly average rate for a 30-year mortgage is trending downward, mortgage rates vary by credit score, Frankel said.

Pros • Can lower monthly mortgage payments • May eliminate private mortgage insurance Cons • Can be costly, as homeowners must pay lender and closing fees again • Paperwork

0 3.1% 3.2% 3.3% 3.4% 3.5% 3.6% 3.7% 3.8% 3.9% 4.0%

3.82%

3.73%

3.56%

3.13%

ANOTHER OPTION

3.36%

A homeowner can also choose cash-out renancing, meaning an existing mortgage is replaced with a new home loan totaling more than the remaining debt. The dierence is paid in cash and can be helpful in paying other debts, as a mortgage is often the lowest-interest loan available, Frankel said.

March 12, 2020 Dec. 12, 2019

June 25, 2020

June 13, 2019 Sept. 12, 2019

SOURCE: FREDDIE MACCOMMUNITY IMPACT NEWSPAPER

F I O R E B O U T I Q U E

Downtown Alpharetta

GRAND OPENING EVENT A u g u s t 1 s t Swag bag g i veaway $25 G I F T CARD F i r s t 20 cus t ome r s

@myf iorebout ique

my f i o rebou t i que . com | 92 Mi l t on Ave , Su i t e 300 | A l pha re t t a , GA 30009 | 404 . 645 . 2674

11

ALPHARETTA  MILTON EDITION • JULY 2020

Powered by