If someone asked you the interest rate on your mortgage, would you know the number? Believe it or not, many people do not know the rate they are paying. This may be due to one or more factors, including:
• The mortgage was obtained many years ago, and you simply can’t remember the rate
• The mortgage interest rate is not fixed, so it fluctuates
• You never asked about the interest rate when the loan was opened
No matter the reason for not knowing your mortgage interest rate, you could be hurting yourself financially by not being aware of the number. An article that recently appeared on CNBC.com entitled A Third of Mortgage Holders Don’t Know Their Rate discusses this fact in detail. According to the article, one of the main reasons many homeowners are unaware of their mortgage interest rate is that they are more concerned about their monthly payment amount, and not their exact interest rate percentage.
The article says the following about homeowners that are going through the home buying and mortgage application process: “They’re in the heat of the moment, they’re talking about rate, but really at the end of the day they’re more focused on completing the process,” said Matt Weaver, senior mortgage loan originator for PMAC Lending Services in Florida. “Once it’s closed, it’s just ‘Said it, forget it.'”
Knowing Your Mortgage Interest Rate is Important Because…
It’s important to know your mortgage interest rate because interest rates are currently lower than they were just a few years ago. If the rates available today are lower than the rate you currently have, you might benefit from a mortgage refinance. How much will you benefit? It depends on your current rate vs. the lower rate you qualify for today. But, a refinance could potentially save hundreds of dollars a month on interest. Over time, hundreds of dollars a month equals thousands of dollars in savings over the life of the loan.
All it Takes is a Few Minutes
If you don’t know your current mortgage interest rate, take a few minutes and find out. All you have to do is call your mortgage lender and ask. Or, you may be able to easily log in to your mortgage account online and obtain the information. Once you have your interest rate number, call a mortgage broker for information on today’s rates. If the difference between your mortgage interest rate and today’s current rates is more than a quarter of a percent, you may benefit significantly from a refinance. Typically, a refinance is a simple process that includes the submission of certain documentation, a house appraisal, and verification of income. Call The Home Loan Arranger today at 1-877-938-7501 or visit The Home Loan Arranger’s website to schedule a free consultation.