Start Saving More and Spending Less by Lowering Your Mortgage Payment Today!

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Mortgage rates are ridiculously low nowadays thanks to a slow economy and federal reserve interest rate actions to keep markets liquid (i.e quantitative easing). While this is bad news for your investments it is great news if you are getting a new mortgage or just looking to refinance and lower your monthly payments. Like any major financial decision though you want to shop around to get the best rates, lowest closing costs and great customer service.

With this in mind here are a set of reputable lenders that I have partnered with to provide you with the best rates and loan options. You can also see a full listing of lenders in your area and their best rates in the table at the end of this article as well. Hope this makes your search easier!

Lender Key Features

Mortgage rates hit their lowest since 1955

  • America’s #1 Online Lender
  • At Quicken Loans you can be matched with up to five lenders to get the most competitive rates and terms
  • Options for discount loans through Government sponsored and FHA programs
  • Lendingtree lets you compare multiple offers (for free) in minutes!
  • You may qualify for an FHA loan, which can allow a low down payment and can lower your closing costs
  • Receive up to 4 offers from lenders and compare rates and terms for each loan

Take Advantage of Today’s Low Rates!

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{ 2 comments… read them below or add one }

Sue Park January 23, 2012 at 3:05 pm

I was wondering what you thought of the following refinance scenario:
I live in California and over-paid for my house in late 2006. We paid $1,050,000. It’s a beautiful house with tons of upgrades, nice front and back yard, etc. We owe $890,000. It’s worth about $850,000. In order to get to the 80% loan to value, we are planning on reducing the principal by paying off the 2nd mortgage ($90,000) with a combination of 401k loan and gift from grandparents. My husband and I own the place together, we both have excellent credit and excellent income. We currently pay $6k a month, not including taxes. Our goal is to get it closer to $4k a month not including taxes. Does it make sense to pay down that 2nd to save $2k a month?

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andys2i January 23, 2012 at 11:17 pm

Great question. I am bit hesitant of recommending using your 401K to pay down your loan, but if you are in a strong position to repay the loan then the numbers may make sense. Fewer outlays now (=more disposable income) may be better now based on your financial situation.

The other thing to consider is your interest rates vs return you are getting from your 401K. By taking out a loan you are not earning any money on your 401K, but since the interest rate on your second loan is probably higher than your 401K return, paying it down could be a better investment in the short run.

I would also consider a refinance, since you both have good credit. You could have lower monthly payments that way as well, without needing to touch your 401K.

At the end of the day, do the math. If you are able to repay your 401K loan for sure AND get a much lower monthly payment then your strategy may be a good one.

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