Right Time to Refinance?

By Zaneta Lowe  - bio | email | Twitter

COLUMBUS, GA (WTVM) - "The demand for refinances is the highest it's been in 15 months."

With rates as low as 4.0%, Iberia Bank Mortgage Vice President and Area Manager Marcus Coyle says they've had repeat customers.

"We even have people that are refinancing who refinanced two years ago," explains Coyle.

Daniel and Zulay Gray recently refinanced.

They just bought a house in Fort Mitchell, Alabama but had two existing mortgages from their homes in Clarksville, Tennessee.

One home's rented out, but Daniel says after getting the runaround from their lender, they searched for a new one with better rates.

"I'm tired of not knowing and not getting the right answer, so I'd like to consolidate my mortgages, as many of them as possible," explains Daniel Gray about the circumstances that led them to consider refinancing.

The Grays got their new mortgage at 4.7% and went from 7% to 4.5% on one of the others.

"That's $200 we save for a one income home," says Daniel.

If you're interested in refinancing, you have to make sure the savings outweigh the expenses.

Like a traditional mortgage, there are closing costs and fees.

"If you're going to be there, living in that house long enough to get your money back and hopefully save some in the future, then that justifies it," Coyle says.

The Grays paid more than $3,000 in refinancing costs.  It got tacked back onto their new mortgage.

However, with the savings, and the hope of selling the other properties, Daniel says it was the right decision.

"Strategically, we feel like it was the right move."

Click here for a refinance calculator.

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