Reviewing Your Options When Refinancing Your Salem Oregon Real Estate

Posted By David Whitton @ Jun 8th 2010 12:10pm In: Financing and Refinancing Your Salem Home

Because of the current lower interest rates, many mortgage experts are advising Salem Oregon home owners to consider refinancing their existing mortgages as a way to

  1. decrease the amount of their monthly mortgage payments
  2. reduce the duration of their current loan, or
  3. provide money for home improvements or other expenses. Interested? Read on…

salem oregon real estateBefore you rush into refinancing your Salem Oregon real estate, be aware of two key strategies that will benefit you. The first is KNOWLEDGE. Carefully investigate the pros and cons of different refinancing features such as interest rate, closing costs and fees, and the term of the loan. Determine the purpose of your refinancing and the amount of savings and/or money you hope to gain from it. Examine your personal financial situation--now and in the future--to identify the best option for you.

Since refinancing is all about numbers, you will want to see figures in black and white before beginning the refinancing process. Online sources allow you to input your information re: the amount of the mortgage, the interest rate, the term of the loan, and fees to calculate your monthly expenditures and savings.

Advantages and Disadvantages

Research the advantages and disadvantages of a fixed rate and an adjustable rate mortgage (ARM).  A fixed rate is usually for a term of 15 or 30 years, and the interest rate remains the same for the term of the loan. An ARM means that after 3 or 5 years your interest rate can change (usually going higher). If you are planning to stay in your Salem Oregon real estate for only a short time, an ARM may be beneficial for you.

If you currently have an ARM which has a relatively low rate of interest, but you are concerned about future increases, you might consider converting your current loan into a 15 or 30 year fixed rate mortgage. Or, since the difference between a fixed 15 year and a fixed 30 year interest rate is significant, you could save thousands of dollars by shortening the life of your present loan, often with only a slight increase in the amount of your monthly payment.

Comparison Shopping

The second most important strategy is COMPARISON SHOPPING. It is imperative that you compare the rates and terms of several mortgage lenders. Again, online sources such as can provide you with multiple loan quotes. Beware of high refinancing fees or borrowing more than you need. Ideally, you should thoroughly investigate the rates, terms, and features of at least three lenders.

The key to finding the best refinancing situation for you is to obtain and understand your current mortgage information, assess your present and future financial status and needs, and comparison shop. You will most likely find that marketing conditions have made this a perfect time to refinance your Salem Oregon real estate, thus allowing you to escape high mortgage payments and/or make financially sound decisions for the future.



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David & Dewey Whitton
The Salem Real Estate Group
6444 Fairway Avenue SE
Salem, Oregon 93706

Direct Line: 503-949-3623
Fax: 888-299-8055
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