Recent studies show that Utah is now the leading state in the country where consumers opt to invest in a house. The continuous improvements in the state have led to the rise in its home ownership rating, now at 69.9%. And regarding location, its capital, Salt Lake City, is one of the premium choices.
With the increase in housing demand, existing homeowners have a lot to be thankful for, since this means higher value for their properties. However, this does not automatically mean you should no longer look for ways to trim your home-loan-related costs.
Now (or shortly) may just be the right time for you to consider working with a Salt Lake City mortgage refinance company, such as Altius Mortgage Group.
The Big Q: What exactly can you get from it?
As long as you prepare and plan for it properly, refinancing can help you in various ways, depending on how you want to use it. But of the many reasons Salt Lake City residents have their mortgage refinanced, one of the most common is to cut back on their interest payments.
A quick review of your mortgage payments
Every month, you make repayments for your housing loan. A big portion of this goes towards paying back your lender the capital (the money you borrowed to purchase your house). The remaining covers other fees such as taxes, and for the lending institution, their profit – in the form of interest.
For example, you took out a 30-year fixed rate mortgage with a loan amount of $100,000 (the capital). The interest rate you and the lender agreed on is 5%. Multiply the money by the interest rate, and what you have is the interest payment divided by the term months (360 months).
In this situation, the total interest payment you have to make for the entire 30 years amounts to $5,000.
Refinancing to lower your interest-related expenditures
To many people, $5,000 is a lot of money. And while you may have the financial power now, you might encounter some difficulties in the future that will make it hard for you to pay your entire debt back. In this case, you can refinance to get a lower mortgage rate.