Many Southwest Georgians are refinancing -, South Georgia News, Weather, Sports

Many Southwest Georgians are refinancing

November 13, 2002

Albany -- Many Southwest Georgians are taking advantage of low interest rates, and refinancing their home loans. The fed says Americans are now very cautious in their buying, one week after another cut in prime leading rate.

 But Eric Faircloth wants to take advantage of low interest rates, and talks with Albany Bank and Trust Mortgage Loan Officer Marilyn Odum. He is shopping for the best deal, while interest rates are low.

 Odum said "The rates right now are at an all time low. 5 and three quarters on a 30 year, 5 and a half on the 15's. So now is a great time to refinance."

While Odum says new home mortgages are not up, refinancing home loans are soaring. Odum said "This is definitely the time, and the fed cut the rate again last week another half of a percent."

You can save big. If you have a 100-thousand dollar thirty year loan at 7 percent interest, your monthly payment would be 665 dollars. By refinancing to today's 5.75 percent interest rate, the same 30 year loan would be 584 dollars a month, saving you 81 dollars a month.

 Odum says many people are refinancing 30 year home loans to 15 years. The 100 thousand dollar loan for 15 years at 5.25 percent, would cost 804 dollars a month. But over the life of the 30 year loan at 7 percent you would pay 140 thousand, 465 dollars in interest. The 15 year loan at 5.25 percent would cost 45 thousand, 650 dollars interest. Saving you 95 thousand dollars over the 15 year life of the loan.

Odum said "Now's the time to definitely do it, and get on the bandwagon."

Odum says most loan refinancing costs range between 2 to 3 percent of the amount of the loan.

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