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By Ashleigh, K-Staff
The housing market in Albuquerque is hot. That means home values are up and inventory is scarce—homes are going on the market and vanishing quickly, often above asking price. The flip side of this trend? Rock-bottom interest rates! The combination of high home values and low rates is making refinancing a home extremely attractive for current homeowners, according to Chad Krieger, Vice-President of Mortgages at Kirtland Federal Credit Union.
“Rates are SO LOW, in particular with the 30-year term and the 15/15 ARM (adjustable-rate mortgage), and will continue to be super low through the end of the year,” Krieger said. “The 30-year (mortgage) note, this is the lowest the rate has been since the 70s,” Krieger said.
A refinance is the process of paying off a current mortgage with another, usually to achieve a lower interest rate, a lower payment, or to turn the equity in the home into cash back for the homeowner by taking out a mortgage that is larger than what is owed on the original loan. Krieger said that a cash-out refinance is a fantastic option for saving money every month by consolidating high-interest and/or compounding interest credit card debt and that the cash back can also be used for home improvements or utilized to payoff other debts completely.
“A big misconception is that a refinance is pricey. The truth is, it doesn’t have to be,” Krieger said. “We can save you money with a refinance. There are some fees and closing costs involved, but if you’re opening a cash-out refinance, you can often take those fees out of the proceeds.”
In fact, up to 2 percent of the loan amount can be used to pay the various costs of closing on the new mortgage. And Kirtland FCU has some of the lowest fees around. The underwriting fee, for example, is a mere $650. Krieger, who has more than 22 years of experience in the mortgage industry, said fees that low are almost unheard of. And Kirtland FCU brings another often overlooked advantage to the mortgage process.
“I’ve worked with big banks, and if you called for help, more often than not you’d be talking to an answering machine,” he pointed out. “At Kirtland FCU, we’re all about personalized service. You have a question? Call your loan officer directly. You aren’t forced online, there’s no phone tree to get through.”
Kirtland FCU also has a trusted relationship with appraisers and title companies, making the whole process a lot faster and smoother than it would be with an out-of-state or online only vendor.”
Refinances have benefits beyond just the great rates, too. Like any mortgage, the interest you pay each year on a refinanced loan is tax deductible*, which makes it more attractive at tax time when compared to a home equity product.
“Home equities are an option for turning equity into cash, but the rates are almost invariably higher than they will be with a refinance,” Krieger said.
Already own your home? The timing has never been better to look into a refinance. You could walk away with cash in your pocket or be saving money every month with the right refinance loan.
Kirtland FCU is proud to be Albuquerque’s premier home loan lender. Give us a call at 1-800-880-5328 to make an appointment, or apply day or night online at KirtlandFCU.org/HomeLoan.
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