Lately, many mortgage brokers and banks and financial websites have been talking quite a bit about how low interest rates have recently fallen.  Home Loan Specialists is now posting the lowest par rates since the inception of our company in 2006.  However, what do these numbers really mean to you as a Texas homeowner?

Historically, mortgage rates have closely followed the stock market movements.  The NASDAQ charts are very well correlated with mortgage bond daily pricing which, in turn, dictates your mortgage rates.  In theory, when stock prices rise inflation is at hand and mortgage rates increase.  Conversely, stock market losses signal lower mortgage rates ahead.

The recent nosedive of US stock prices has continued to confirm this relationship as mortgage rates dropped an average of .25% last week.  This rate decline was seen in all of our most popular loan programs including the 10 and 15-year fixed, jumbo, and government rates.

Qualified borrowers should give serious consideration to signing the contract and locking in immediately.  Now is the time to consider refinancing your current home, buying an investment property, or buying a new home.

Below, we developed a refinance analysis for borrowers who purchased a new home in 2006.   It is stunning how much you can save over the life of your Texas mortgage!

Be sure to call our office at (832) 286-1600 or email Rick@HLSTX.com for your customized analysis!

Original Loan Information from 2006 (5 years ago)

Original Loan Amount: $700,000

Original Interest Rate:     6.25%

Original Loan Duration:   30 Years (360/360)

Refinance Today – 30-year Loan

New Loan Amount: $650,000

New Interest Rate: 4.875%

Old Monthly Payment: $4,310.02

New Monthly Payment: $3,439.85

PROJECTED SAVINGS: $306,848.00

Refinance Today – 15-year Loan

New Loan Amount: $650,000

New Interest Rate: 4.25%

Old Monthly Payment:  $$4,310.02

New Monthly Payment: $4,889.81

PROJECTED SAVINGS: $665,029.00

The borrowers in this example will basically be saving an entire house worth of money if they refinance their already low mortgage to a 15-year loan.  Their monthly payments will go up minimally because of the shorter term; however, their projected savings and equity-building opportunity is significant.

As we mentioned before, now is the time to look into refinancing your home, purchasing a new residence and even beginning your foray into investment properties.

With this seemingly never-ending heat wave gripping the Houston area, here are some simple ways that homeowners can attempt to stay a little cooler while inside their homes.

• Close your blinds and curtains to keep out the sun and the heat.
• Close the vents and doors to any rooms that aren’t being used.
• If you do not have air conditioning, keep your activities to the lowest level of your home since heat rises.
• Avoid using the stove or the oven (use the microwave) and put-off on running the dishwasher (don’t use the heat cycle for drying) or washing laundry until after the sun goes down.
• Replace manual thermostats with programmable thermostats and set them at around 78 degrees or higher during summer months.  Raise the temperature of the thermostat when you leave, but do not turn the air conditioning off. Your unit will have to work too hard to get your home’s temperature back down later.
• Keep your air conditioner clean. Outdoor units can get clogged from weed pollen and other materials that are floating around in our outside air.  Use a hose to spray your a/c unit down; making sure all plant debris is washed away from the unit.  Ensure the inside filters are cleaned or changed monthly.
• Use ceiling fans (or install some) to allow you to be comfortable at a higher ambient temperature. The air movement can make you feel several degrees cooler and make it much easier on your a/c and utility bill.
• Always have a pitcher of icy water ready in your refrigerator. Letting the water run from the tap until it turns cold is wasteful and inefficient.

Aside from keeping yourself and your family safe from these brutal temperatures, also be sure to check on your neighbors, friends and relatives you think might be at risk in this kind of weather, and keep your pets inside with you.