Hi guys, Jim Ryan with Team Get It Done, answering the question “Is it time to refinance?”

Well, first off, you have to know that interest rates have dropped at the most drastic rate in the past two weeks as they have in the past two years. So it’s definitely a good opportunity to look into. But first, let’s answer a couple of questions:

  1. Do you have an FHA loan? PMI (mortgage insurance) on an FHA loan never goes away! So just by converting it to a conventional loan through a refinance, you might get to a situation where, even if you don’t eliminate PMI automatically with the refinance, you’ll set yourself up so you eventually do.
  2. Has your credit gone up? A lot of times, people buy their house with credit scores in the 600’s. Then, as they make payments on their mortgage, their credit score rises to over 700. That could be the difference between an entire ‘point’ in interest rate, which is definitely a good reason to look into this.
  3. Is your current interest rate above 5%? If it is, definitely a good reason to look into this; you might be able to save over a point in interest rate.
  4. Are you paying PMI? Big question, but look at your mortgage statement to see how much you are paying in PMI each month. Imagine that being gone! And it’s totally possible, especially with the next two factors.
  5. Have you made improvements to the property? You might have done a kitchen remodel, a bathroom remodel, or simply just kept it up and made it look nice.
  6. But the biggest reason you want to look into refinancing is the appreciation rate, and a lot of time this surprises people. Right now, the appreciation rate in Wisconsin is at 5% and greater, and sometimes it’s double digits! And that’s mostly the area around Fox-Conn, but most areas are above 5%.

(And just to give my own personal experience: I put 5% down on the house that I currently own, I refinanced just 15 months later, and my house had appreciated 14%. So with 5% of my own money, I had 19% in equity).

So, check this out, I’d love to look into it for you. Simply go to the “Apply” page and we will be in touch within 24 hours with results, and we’d love to work with you. Thanks for watching!