How to lower your mortgage payment: "Home Sweet Loan" - MSNewsNow.com - Jackson, MS

How to lower your mortgage payment: Home Sweet Loan

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JACKSON, MS (Mississippi News Now) -

Record low mortgage rates are helping improve today's economy. If you are in the market to buy, build or refinance, look no farther than the front door for huge savings.

Mortgage rates are at an all time record low according to Freddie Mac. Claudia Faries just refinanced from a rate over 5% to 3.5%. She said,

"They are really low and its very beneficial," said Faries.

Experts say refinancing, even if you did it six months -9 months ago certainly makes plenty of financial sense.

Mortgage closing attorney Robert Harrison says it's all about buying cheap money.

"If your goal is to have your family to have some stability, now is the time," said Harrison.

Margaret Byrd owns The Mortgage Connection and is a local mortgage lender.

"Rates are so great now I don't think I would wait any longer," said Byrd. "I don't see how rates can get much lower than they are now."

"There are opportunities out there with the interest rate being what they are for people to get into a home for less than they are paying in apartment rent right now," added Harrison. 

The pro's include reducing your mortgage rate, principal balance and then you have more cash in your pocket to pay off other debts or your house more quickly.

Brandon homeowner, Claudia Faries just refinanced for 30 years.

"I'm saving a little over $200.00 a month," said Faries. "That helps out a lot in this economy."

She intends to use the extra money to pay her utility and cable bills.

Know your credit score. If you have lousy credit, it can be fixed according to the experts.

"If you look at a mortgage loan as nothing more than going to buy money, I think you realize you are shopping for the best rate that is available to you," said Harrison. "And you understand you have to improve your situation before you get there. Some people say I have the credit to get in an apartment but I don't have the means to get into a house. Go talk to a mortgage professional. There are programs out there."

The best advice we found is to compare mortgage rates being offered by your locals banks and private mortgage lenders.

"There is a definite benefit in the ability to have a local mortgage professional that you can go sit down with and talk to," said Harrison.

Banks and lenders won't offer the best deals to just anyone. You probably need credit scores above 700.

Also some online lures may require points or more money up front.

"I've seen a lot of problems with online mortgages not to say they don't work out," said Margaret Byrd. 

Does refinancing make financial sense for everyone at this point in time? For some yes for others no.

For instance if you are going to sell your home soon, don't refinance. The rule of thumb is if you plan to move in the next 3-5 years refinancing may not be to your advantage. The front end savings are chewed up by closing costs and fees.

Most everyone agrees refinancing is the key to unlocking and saving big bucks with a home sweet loan.

Another matter to consider is: When you refinance you reset your mortgage clock back to 30 or 15 years, and with stricter laws to prevent fraud, be prepared for more paperwork.

And when it comes to closing cost, try to avoid rolling them back into your new loan. That would increase your monthly payment.

No one knows how long these super low current mortgage rates will last.

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