ROGERS, Ark. (KNWA/KFTA) — Financial experts say people can save hundreds of dollars right now with how low interest rates are amid coronavirus concerns.
Our refinance netted us about $350 a month in savings.Brett Kirkpatrick, Recently Refinanced Home
Brett Kirkpatrick and his family moved to Northwest Arkansas from California a little over a year ago.
“I did some research on my own obviously knowing the economic state of where we’re at,” Kirkpatrick said. “Looking at the whole landscape of everything it made sense now to go ahead and do a re-fi [refinance].”
He told Kirkpatrick that interest rates are plummeting as coronavirus concerns continue to grow, so he [Kirkpatrick] decided to refinance his home — a move he said saves him more than three-hundred dollars a month.
You can apply that to a vacation, or something fun, or just pay off other debt.Brett Kirkpatrick, Recently Refinanced Home
Allensworth said the phones have been falling off the hook with people, like Kirkpatrick, asking about refinancing.
“Overall in the industry applications for refinances have been up to 79%,” he said. “We’ve seen that or greater in our office.”
Aside from reducing the amount of time you have on a loan or reducing your monthly payment, Allensworth said if you’ve been putting off buying a house, the time is now.
“With the interest rates being so low you can get the best deal that you’re going to get on your monthly payment if you purchase a house now,” he said.
Allensworth said this is a once in a lifetime opportunity — that Kirkpatrick said he’s glad he jumped on.
You’re really not gonna find rate this low again.RICH ALLENSWORTH, LOAN OFFICER, ROCK MORTGAGE
“It’s all about really at the end of the day when you get paid, what you have left that you can spend to improve your quality of life for you and your family,” Kirkpatrick said.
Allensworth recommends speaking to a mortgage or real estate professional before making large financial decisions.
He said it’s important before you make any sudden decisions, that you make sure it’ll benefit you.
An example he gave was if you’re going to be moving soon, refinancing might not be for you.
“If the closing cost fees could be paid in less than you know two or three years I want to make sure that the borrower is going to be in the house for that long,” he said.
He said if you’re happy where you’re at and think you’re going to be here for a while, refinancing will probably be an option if the cost savings are there.
If you have a 30-year fixed mortgage and you’ve been paying for your house for 10 years, Allensworth said you might look at a 15-year fixed mortgage because those rates are extremely low right now.
“You can knock five years off of your home payment plan and still keep your payment close to the same,” he said. “It’s crazy how much money you can save by doing that.”
Allensworth said interest rates (rates vary from person to person) are at an all time low across the board, so to get an exact number for what yours would be you need to call an expert.
No matter what, he said it’s at least worth a call to someone who knows about finances because it doesn’t cost a dime and could ultimately save you hundreds of dollars a month.