More than 1 in 3 of us are clueless about what our mortgage interest rate is, according to a new BankRate.com survey. Think about it: Your mortgage is the #1 expense in our lives and 33% of us don’t know what interest rate we’re paying!
What you don’t know can hurt you. If you don’t know your interest rate, how can you know if you should be refinancing?
You’ve got options for refinancing
Right now, the rates are so dirt cheap that people with decent credit can get a 15-year refinance at or below 3% or a 30-year mortgage right around 4%.
If you have just a few years left, credit unions offer 7 year and 10 year refinances with rates down in the 2s.
But the rate is not all you look at. It’s key to look at the expenses — both points (which are junk fees where you pay 1% of the money you’re borrowing) and closing costs.
I told you recently that half of people who shop for a mortgage only get a single quote. Big mistake. People will comparison shop like crazy on consumer items, but they find the loan process so intimidating that they’re one and done.
MTGProfessor is a website that does so good at explaining in layman term’s everything about mortgages. I’ve had Prof. Guttentag on the show before and he’s a great guy. You can even post a question for the professor on his website and he may well be able to help you.
This is your money. Don’t waste it!