Does it Still Make Sense to Refinance MY Mortgage?
Recently, in just one short sitting, I read headlines touting a rise in refinance activity due to mortgage interest rates ticking downward ...
To the defense of the news sources sharing the articles, each may have accurately represented the information and facts as they stood at that precise time they were written.
But because of the speed with which financial trends develop and occur, by the time it could be read, the information and advice shared may have no longer applied. It may have been old, incorrect, and given readers a completely erroneous set of facts as they presently stood.
Staying on top of interest rates and mortgage industry trends can be daunting, even for a loan officer. Reporting them? Even trickier.
One fact regarding interest rates is undeniable. They have remained fairly stable and unbelievably low over the last few years.
I'm sure you've seen the term "historic low rates" utilized in many of the news articles and reports you've read. Consumers have had the benefits of borrowing money at low rates at their disposal for a long time now.
But because we've enjoyed low rates for so long, many current homeowners (and those buying homes too) with older mortgages carrying higher rates have been lulled into thinking that the "historic low rates" will last forever. That's not true, as interest rates have recently been fluctuating and/or moving slightly upward.
Many industry experts are predicting that this upward trajectory will continue. But does that mean that the window of opportunity for saving money via a refinance has closed?
The answer to that question lies in the specific finances, credit history, and needs of each individual asking it. And as I've written in the past, there's only one reliable way to get an answer ... talk to an experienced knowledgeable loan officer.
Only via that conversation will you discover if a refinance would prove:
- Valuable to you monetarily in some way
- Strategically wise for your finances, both in the short and long-term
Remember: Refinancing to lower an interest rate is not the only reason to refinance. Other very valid reasons exist.
Those can include:
- Tapping into available home equity
- Shortening the term of a loan (eliminate years of payments)
- Eliminating Private Mortgage Insurance
- Converting ARMS to Fixed Rate Loans
- Paying off bills or credit card debt
- Reducing monthly Payments
- Buying out an ex-spouse after divorcing
- More ...
- Appraisal Fee
- Loan Origination Fee
- Title Insurance
- Homeowners Insurance
- Taxes
- More ... (Costs specific to the individual Borrower)
Both client and lender must be ready to react to fast-moving and fluid market indicators throughout the entire financing process. Response time and timing of any actions taken can make a huge difference as to the interest rate secured and ultimate success found.
Throughout the entire mortgage process, these old sayings remain more true ... "timing is everything" and "time is money".
Does it Still Make Sense to Refinance MY Mortgage? There's only one way to find out.
If you hold a higher interest rate mortgage ... want to put your home equity to work for you ... hope to eliminate your PMI ... or just want to evaluate your financing options, don't hesitate to contact me.
I will provide you the information and timely answers you need to make the decision that's right for you and help you find the financing solutions that fit your personal needs and goals best.
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
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