How To Capitalize On Record Low Mortgage Rates

<p></p> <p>Now that interest rates are as low as they&rsquo;ve ever been, mortgage refinancing is extremely popular.&nbsp; But it&rsquo;s also a confusing process.&nbsp; Do you know how to figure out when refinancing makes sense?&nbsp; What are the right rules to follow when refinancing your mortgage?&nbsp;</p> <p> </p> <p>In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about how physicians can capitalize on record-low mortgage rates. Compare and analyze all mortgage options that incorporate closing costs and other complexities. The decision to refinance is not so clear-cut and straightforward.&nbsp;&nbsp;&nbsp;</p> <p> </p> <h3><strong>Topics Discussed:</strong></h3> <p> </p> <p>Why refinance? New loan costs + closing costs &gt; existing loan costs</p> <p> </p> <ul> <li>What? Find and set up a new mortgage to pay off old, existing mortgage</li> <li>How? Depends on the specifics of the deal</li> <li>What drives mortgage interest rates? Market or economic factors: <ul> <li>10-year treasury rate</li> </ul> <ul> <li>Supply and demand</li> </ul> <ul> <li>Credit score</li> </ul> <ul> <li>Percentage of home equity</li> </ul> <ul> <li>Debt-to-income ratios</li> </ul> <ul> <li>Loan payoff term</li> </ul> <ul> <li>Loan size</li> </ul> </li> <li>What is the true cost of the loan? Add closing costs, interest and sometimes PMI</li> <li>Break-Even Point: When interest rate savings equal closing costs</li> <li>Long-term Costs: What&rsquo;s the cross-benefit of keeping and paying fees?</li> <li>Amortization Schedule: Run numbers using calculator for current/potential loan</li> <li>Other Considerations: Compare rates, different lenders, and loan estimates</li> </ul> <p> </p> <h3><strong>Links:</strong></h3> <p> </p> <p><a href="http://www.freddiemac.com/pmms/pmms30.html">Historical 30-Year Mortgage Rates</a></p> <p> </p> <p><a href="https://www.calculator.net/amortization-calculator.html">Mortgage Amortization Calculator</a></p> <p> </p>