With the mortgage rates at their lowest levels in nearly four decades, homeowners are signing up to refinance. "We have stayed extremely busy in the mortgage area," said Mark Malone, The Old Fort Banking Company's Senior Lending Officer.

People typically refinance a mortgage to get a lower rate and reduce their monthly payments, or to shorten the loan's term and pay less interest.

Rates ranging from 3.5 percent to 5.5 percent have been available from Old Fort. The lower rates are available to those with a better credit rating and a smaller loan-to-value ratio.

But steady as the flow of refinancing applicants has been, it may not be quite as big as it was a few months ago or even a year ago, said Malone and Tom Zirm, an Old Fort Bank mortgage loan officer.

That is because rates have been low for about a year. "People have had plenty of opportunity to refinance," Malone said.

"Our refinancing business has picked up tremendously in the past two weeks," said Dianne Polley-Bodager, another Old Fort Bank mortgage loan officer. Polley-Bodager also attributes the pickup to recent media   Tom Zirm                  reports about the low rates.

For those considering whether to refinance, Dianne offers a formula to determine whether refinancing is worth it:

Divide the refinancing closing costs by the amount saved each month in a lower house payment. The result will be the number of months it will take to break even on the refinancing.

For example, say your closing costs are $2,000 and your monthly mortgage payment decreases by $114, Polley-Bodager said. You would recover the $2,000 closing costs in 18 months. If you plan to live in the house more than 18 months, refinancing makes sense, Polley-Bodager said.                                    

Zirm suggests homeowners also consider how many years are left on their current loan. The fewer years  left, the greater the portion of their payments going toward paying off principal, which is a good thing and builds equity.

                                                                    Dianne Polley-Bodager

Contact Dianne or Tom today with any mortgage or re-finance questions.    1-866-347-3440 or you may reach them at:                                            Tom Zirm - 419-447-1513 ext. 1533    . tzirm@oldfortbank.com         Dianne Polley-Bodager - 419-334-2989    . dpolley@oldfortbank.com 

OLD FORT BANK SPONSORS                    GORDON LIGHTFOOT AT THE                    RITZ THEATRE - OCTOBER 10, 2010

Old Fort Bank is pleased to partner with the Ritz Theatre in sponsoring the performance of Gordon Lightfoot - Sunday, October 10, 2010 - 7:30 pm. You may remember his "The Wreck of the Edmond Fitzgerald" and "If You Could Read My Mind". Visit www.ritztheatre.org and click on Performances for more information.

As a homeowner, you can benefit from using the equity in your home. Speak with an Old Fort Bank Home Equity Lender to discuss  a Home Equity Line of Credit.

Bettsville: Emily Kizer - 419-986-5101                                        Clyde: Frank Weasner - 419-547-8995                                     Findlay: Anne Wells or Melissa Houck -419-424-0458                         Fostoria: Diane Schelb - 419-436-1425                                  Fremont: Brandy Miller- 419-334-2989                                             Old Fort: Paula Hunker - 419-992-4227                                        Tiffin Downtown: Peg Benner - 419-447-4790                               Tiffin Westgate: Sandie Rau - 419-447-1600   

Old Fort Bank...Your Trusted Source for Financing.