With interest rates still at their lowest in decades, Bank of Little Rock Mortgage has seen a flood of people interested in refinancing.
President and CEO Scott McElmurry said, "We're incredibly busy right now. There's an enormous volume of people taking advantage of low interest rates right now."
Switching your typical 30 year loan to a lower interest rate could mean an extra couple hundred bucks in your pocket each month. Or you can switch to a shorter loan term. It might cost you a little more each month, but you'll pay off the mortgage sooner, build equity, and save big on interest.
Refinancing isn't right for everyone. McElmurry says you must account for the closing costs. "A lot of it comes down to how long you're going to be in the house, because you want to save money," he said. "But if there are costs involved, you want to recapture those costs in a relatively short period of time."
McElmurry says if it takes longer than three years to recoup the costs of refinancing, it's not worth it.
If you're thinking of refinancing, call your loan officer or start by educating yourself online. Bank of Little Rock Mortgage has a free ebook with information. You can find it here- http://blog.blrmortgage.com/how-to-refinance-your-home-loan.