Perhaps you’ve been thinking about refinancing your home for a while but remain unsettled on whether to move forward. Or maybe you’ve never thought about refinancing but are interested in learning more. Regardless of which category you fall into, now is a great time to refinance. Up next, discover the reasons why.
Interest rates remain historically low
With rates for 20- and 30-year fixed refinance loans hovering around 3%, it’s prime season for a home refi. Fixed refinance loans of 10 and 15 years have an even lower interest rate. Financial experts don’t expect these rates to stay this low much longer, however. This is especially true with all the uncertainty surrounding the new omicron variant of COVID-19. Before rates tick back up as they inevitably will, take advantage of this opportunity to refinance at a historically low interest rate. A year or two from now, you will almost certainly be glad you did.
You want to cut monthly expenses
If money is tight and you’re looking to reduce the amount you have to pay out in monthly expenses, a refinance can be your golden ticket. If your home interest rate is around 4% or higher, you’ll discover a significant difference in your monthly mortgage bill if you refinance for the same term (30 years, 20 years, etc.) as your current mortgage. By the time you add up your savings from each month, you could be saving thousands of dollars a year. Sound good? Yeah, we think so, too.
You wish to eliminate debt
Maybe you’re not so concerned about cutting monthly costs but would prefer to pay off your mortgage loan faster. If this is the case, you can continue making the same monthly mortgage payment once you’ve refinanced and have a better interest rate. More of that payment than it did before will go toward your principal loan balance. Less of your payment will go to interest. The result? You’ll pay off your mortgage loan a lot faster, eliminating a major debt in your personal finances.
Still not convinced that now is a great time to refinance? No problem. You might need to talk with one of our mortgage advisors, who can answer your questions. Contact us today. We look forward to meeting you and guiding you through an easy, successful refi.