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Interest rates are falling again, and many Albuquerque homeowners are now deciding on what they should do with the equity they’ve gained in their homes. Some homeowners are considering using that equity for home improvement projects, bill consolidation or for a college education. Whatever their needs may be, homeowners are looking to tap into that equity. But, should the homeowners do a full-refinance, take out a second mortgage? Indigo Mortgage can help you with that tough decision!

The answer to this depends on your first mortgage and how much equity you intend to tap into. A full-refinancing could be a lower or higher interest rate. Depending on how much you are borrowing and what the new payment looks like, a full refinance may be worthwhile.

To calculate this, you will need to determine what the payment will be on a full-refinance using today's’ rates including the cost of cashing out and closing costs. From there, look at what the payment would be on a second mortgage while leaving the first mortgage in place. Then, add the second mortgage payment to the current first mortgage payment. Then, compare the second to determine which will fit your budget better. It’s just that easy!

If you choose a second mortgage, there are some things to consider. Clients need to make sure it’s a fixed-rate second mortgage and not a HELOC (Home Equity Line of Credit). HELOCs carry a variable rate.

If you’re shopping for a full-refinance, make sure to use a local Albuquerque Mortgage company, like Indigo Mortgage. Indigo Mortgage will give you an honest evaluation and assist you instead of trying to sell you a loan. Indigo Mortgage will provide you with accurate information and won’t try to sway you one way or the other.

Published in Blog
Tuesday, 16 April 2019 15:33

KKOB - April 9th, 2019

<>Ben Lucero speaks about which is better? A full-refinance or taking out a 2nd mortgage equity loan?
Published in Radio

A home equity line of credit, or HELOC, allows a homeowner to tap into their home’s equity at a low interest rate. HELOC’s are great for major expenses such as education, home improvements or unexpected medical bills. However, because HELOC’s carry a variable mortgage interest rate, when interest rates rise, so will payments.

When the federal reserve announces a .25% rate increase in December, HELOC’s will instantly be impacted. Each quarter thereafter, rates can continue to increase by .25%, so by this time next year, HELOC rates may be a full percentage higher than they are today.

Many homeowners with home equity lines of credit may have been making low interest only payments and neglecting to pay on the principle. This is a problem. With the potential continued increase in rates, homeowners with HELOC’s could realistically see their payments double or triple over the next few years.

While rates are still low, now would be an opportune time for homeowners to consider refinancing both their first and second mortgages into a low fixed rate mortgage. And if you’re a veteran, the good news is you can refinance up to 100% of the value of the home to accommodate this, and the FHA will allow up to 97% loan to value.

If you have a home equity line of credit, Indigo Mortgage encourages you to call today and see if a refinance can save you money!

Published in Blog
Wednesday, 23 September 2015 00:00

KKOB on September 22

How to Distinguish Between a Second Home and an Investment Property

Published in Radio

It is not uncommon for a second home to be confused with an investment property. To distinguish between the two, there are a few ground rules to establish.

Published in Blog

As most people are realizing, mortgage rates have come off the bottom and are higher than they were just a few weeks ago. By historical standards the rates are still very low. There are still many opportunities for borrowers looking to refinance. For example, if homeowners have a fist and second mortgage and that second mortgage is a Home Equity Line of Credit (HELOC) or a variable rate, it is still wise to try to consolidate them into one mortgage if they have enough equity. This prevents them from having that variable rate skyrocket when the rates go up. Another opportunity is for homeowners who are holding on to an ARM, or Adjustable Rate Mortgage, because the warning shot has been fired and those rates are destined to go up. It’s better to get under a fixed rate while the rates are still low. One other opportunity is for borrowers who have an FHA or VA loan that is higher than 5.25% they can still streamline these loans to a lower rate without an appraisal. Also, for anyone looking to purchase it’s a great time to get a pre-qualification and start shopping for that new home.

If you’re interested in any of the subjects referenced or have questions on how to save money with your current loan, or for any other mortgage or refinance information, contact Indigo Mortgage at 505-836-5700. Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. The company has five mortgage divisions for Residential, VA Loans, Reverse Mortgages, Construction and Commercial loans. Our mortgage broker and underwriters are certified by the National Mortgage Licensing System, NMLS # 188348.
Published in Blog
Wednesday, 26 June 2013 15:59

KKOB on June 25

Mortgage Interest Rates Have Come Off the Bottom, But There are Still Opportunities for Homeowners Looking to Refinance

Published in Radio

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