Newsletter | October 2011

Historically Low Interest Rates

Don’t miss this opportunity to refinance your house at historically low interest rates!

The average rate on a 30-year fixed loan has been hovering at about 4.15 percent - as low as it has been in 40 years. This has a lot of people applying to refinance.

Refinancing applications in August rose 83% from this year's low in February. Most people remember the days when rates were double or more what they are now. Refinancing is attractive because monthly payments can be much lower which in turn increases your purchasing power or ability to save for your children’s college or your own retirement.

For some people, you may find if you refinanced a year ago, you may not be able to save enough money to make it worth refinancing again. You should look at the cost versus the benefit. You should also be aware of any potential points, closing costs and the period of time you plan to stay in your house. Whether or not you plan to stay in your house for the next 30 years, there may be products other than a 30 year mortgage that are better for you.

With the stubborn global financial crisis, rates are likely to stay low. However don’t allow that to cause you to procrastinate and miss out on a historic opportunity to lower your payments and increase your cash flow right away.

If you’re wondering if refinancing might be a good idea for you, please call Eric Roth at Roth CPA and Associates today.