How much you ultimately pay for a home over time can come down to a few dollars extra payment a week. In many instances that extra bounce on your cash reserves can come with knowing when to refinance your mortgage. And that can be realized if you can line up your home re-mortgaging when the interest rates are low.

For example, a couple refinancing their mortgage with only a 1% drop in interest rates can realize as much as $105-$110 a month, which is over $1,300 a year. Now, over the 30 year life of the loan this amounts to $39,000. This would seen like a sane plan for homeowners. In some cases it would even seem smart to gain a point or point-and-a-half off your mortgage by paying a penalty to re-mortgage before the term comes to completion. If you are going to to $2,000 a year for five years a $1,500 penalty might seem pretty small.

In light of the recent downturn in the economy and surplus housing on the market many economists were of the opinion than 2008 was going to be a time to “circle the wagons.” The view was homeowners were going to refinance for longer terms to get the payments down. But rather than look forward to a 30 year amortization – most of which is interest for the first ten or so years – homeowners are confounding the experts by dropping the term to 15 years. So the $105-$110 savings per month is basically being applied back to the principal for a shorter term.

In a recent issue of the New York Times, Robert Van Order, the chief economist for the Federal Home Loan Mortgage Corporation stated that, "People are using this windfall as a device for saving." The head of the company known as “Freddie Mac,” a Government-created mortgage financing company which is one of the main sources of credit for American home buyers, went on to say, "In normal times, 15-year mortgages tend to be about 15 percent of our purchases. Lately, they've been about a third." This is, in effect, a forced savings.

Here's another example: A New York firefighter with a 30 year mortgage at 9.75% was paying $1389.00 on a 30 year amortization. He recently renegotiated his load for 15 years at 6.5% and his payment is now $1381. So, he not only saved $8 a month he cut his mortgage in half.

There has never been a better time to buy a new home or make a major renovation to your existing home. Why? Because the supply of homes on the market at such a low price and builders willing to construct or renovate a home for much lower prices than before means a great savings. And how does the financing stack up with low and no-interest loans almost disappearing from the landscape?

Let Renovation Experts help you make you next financial move. Our network of finance experts can get you a free quote on the added space, new home or low interest re-mortgaging.