The most common question I’ve been asked lately is “Should I refinance my mortgage?”

Without a doubt, we’ve never seen mortgage rates so low. It’s an excellent time to purchase a home or refinance an existing loan.

Our newlywed daughter and her husband are renters who are exploring options for buying a home. We sat down together and ran the numbers for a $200,000 mortgage. With rates at 3.375% on a 30-year term, their monthly mortgage would be $884. When we dissected the payment even further, we calculated $322 would go towards principal and $562 towards interest.

Now compare those numbers to a $200,000 mortgage at 7.50% for 30 years. In that scenario, the monthly payment would be $1,398 with $148 going towards principal and $1,250 going towards interest.

With mortgage rates at historic lows, not only would they pay less interest on the mortgage, but they would also earn equity in their home at an accelerated rate.

Those numbers alone help make a strong case for buying over renting.

Now consider the tax benefits of having a mortgage. Home owners receive tax deductions for the interest paid on the loan, as well as the property tax. Renters receive zero tax incentives.

In a nutshell: It’s the perfect time to buy a home, or refinance an existing mortgage.

We’ve experienced a record number of mortgage applications during the last few months. It’s a great feeling to know we’re helping our members achieve significant savings on their home loans. I invite you to visit with any of our experienced mortgage originators about your potential savings with a mortgage at Goldenwest.

Congratulations to Brooke Wise, who was recently named business development manager for our new Centerville office. Brooke is just one of many mortgage originators who can help you get a great rate on your home loan. We thank Brooke for her hard work in getting our Centerville office ready to serve our members in southern Davis County.

It’s an exciting time to be a Goldenwest member. With the Centerville office opening in August, we now have 20 branches available to serve you. I plan to post an announcement on Twitter in the near future about our next new branch. I invite you to follow me at @GoldenwestCUCEO.

Thanks for being a member!

Kerry H. Wahlen
President/CEO