What is refinancing?
Refinancing gives homeowners access to a new mortgage loan. Refinancing your mortgage at a lower rate could reduce your monthly mortgage payment or allow you to pay off your loan faster with a shorter term loan. You could also refinance to take cash out, using the equity of your home to get cash for a large purchases (like home improvements or paying off high-interest debt). It’s also an opportunity to change your mortgage lender.
Is it the right time to refinance?
Your needs as a homeowner may have changed today compared to when you first purchased your home. This could lead you to ask yourself, “Is it the time to refinance?” Or a better question to ask yourself, “is it the right time to refinance? If you are one of the 8.7 million households eligible to refinance according to Black Knight Financial Services’ monthly Mortgage Monitor, the answer could be yes.
Should I wait for lower rates?
Most people think a lower rate will come if they just wait a little bit longer. Instead of waiting, try finding a good mortgage loan officer. A good loan officer can help you decide when the right time to lock in a rate is.
Where are mortgage rates now?
At the moment, mortgage interest rates are near 3-year lows. In 2016, rates have been willfully low and dropping, putting many homeowners are in a favorable environment. With rates this low, it is a great time to look at whether refinancing is favorable for your specific scenario. Rates are constantly changing and many factors can affect the mortgage market. Waiting is always risky when rates are low because it’s hard to tell when they will start to rise again. Current factors that may adversely affect mortgage rates are the Fed raising the Federal funds rate again (two hikes are scheduled for this year still) or the coming election, which will likely affect all financial markets in some way.
Talk to your current lender or find a good mortgage loan officer today to find out whether you are one of the 8.7 million households currently eligible to refinance.