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Low Mortgage Rates Spur
Refinancing |
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 closin
g
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.
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Planning Home
Improvements, Bill Consolidation or a Vacation? |
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.