Rates Are Going To Rise – Should You Refinance Now?
So here’s the question. You want to lower your mortgage interest rate to lower your monthly payment. Who doesn’t right? But should you do it now with rates so low, or wait to see if they are going to go even lower?
Refinancing can save you a ton of money, but you need the straight scoop before moving forward so you can make the best decision. Let’s face it, I’d love to help you sell your present home and find one that more closely matches your current needs.
However, for many of my clients, selling may not be the best option at this time. True to form, we are here to serve as a resource any way we can . . even if that means helping you stay in your present home.
Home refinancing is a great option for people looking to lower their monthly payments, get money for home improvements, consolidate debt from high-interest credit cards, switch from an ARM to a fixed-rate mortgage, or even avoid foreclosure.
Low rates may be ending soon
Interest rates are still at historic lows, but the end may be in the near future. That’s why now is the best time to investigate your options, whether it’s selling or refinancing while you can still save a pile of dough.
3 things:
Understand lender fees and points – Discuss and ask questions regarding lender fees and points on your new loan. Really check for surprises, such as last-minute closing costs or higher than expected interest rates.
Don’t get busted paying off early – Depending on the contract details, some mortgages have penalties for prepayment. Tip: in some cases, even if you have a penalty, it might still make sense to refinance based on the amount of money you’ll save.
Get a few quotes – Normally, I recommend placing as much or more importance on the person servicing your loan as their rates. However, shopping around for quotes from a variety of companies is a smart idea because each one will offer you something different. Comparing quotes and contract details helps you pick the best refi offer for your situation.
Let me know if you need the name of a good mortgage rep, or need a hand making sense of your refi quotes. Call me at 425-330-0663.
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