By Susan Shinn
For The Salisbury Post
Whether you should refinance your home is your decision, and several local homeowners have done just that ó all for different reasons.
Angela Hall is a certified public accountant with Gary Davis CPA. She and husband Ed recently refinanced their Mocksville Avenue home.
ěWe had a 15-year mortgage at a really great interest rate,î she says. ěWhen rates dropped, we realized we could get a better rate, pay the same amount and pay the home off sooner.î
She and her husband will end up saving six to 12 monthsí worth of payments.
ěI look at that as money in my pocket,î she says.
Cara Reische and her husband Jon Palmer had a similar experience.
ěWhat caught our eye was the low interest rate,î Reische says. The couple refinanced their Spencer home about six weeks ago.
ěWe had paid off our house,î Reische explains, ěbut we had a home equity line that was prime plus one, but it fluctuated. So what we decided to do was finance and have a fixed interest rate, then use the cash for home improvements.î
She adds, ěWith the economy as it is, we just figured it was smarter to do it that way because we could deduct the interest.î
Jayne Helms is a Realtor with ReMax Leading Edge. Her husband John is also a Realtor, so the decreasing rates were something of which they were aware.
ěWe refinanced because the rates were so low,î she says. ěA lot of the banks have approached people to refinance. Being Realtors, it made sense.
ěI was working with a client who got a low rate,î Helms says. ěI couldnít sign up fast enough!î
She points out that many of these loans are assumable, which is excellent for resale.
Helms says that she and her husband saved several points on their Confederate Avenue home when they converted from a 30-year mortgage to a 15-year mortgage.
ěOur payment was very close to what it was before,î she says. ěNow our payments are going toward our principal.î
This will save Helms and her husband a ětremendous amountî of money over the life of their loan, she says.
Realtor Bryce Beard likens the low interest rates to a buyerís market.
ěThis is the time to refinance,î says Beard, whoís with Wallace Realty.
Beard financed his primary home and vacation home, saving $600 a month between the two mortgages. He extended his 15-year loan to get a lower interest rate and lower payments.
Heís pleased.
ěItís like found money,î he says.