Why This is the BEST Time to Refinance



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There is no reason to pay more for something – anything, if you don’t need to do it. And this could not be truer for mortgages. When the housing market crashed in 2007 most homeowners had no idea of what the aftereffects would be. Yet today, as we are on the brink of a full recovery and we continue to see national and local improvements across the board – it remains one of the best times to refinance your home.

Here’s why: The Fed continues to keep interest rates at their record setting historic lows. Add to that the slim chance we will not see an increase in the base rate anytime before late 2013 or even 2014 and you have the perfect recipe for mortgage savings.

Right now, we are seeing interest rates that are in the mid 3% range for 30-year fixed rates loans and even lower for 15-year notes. So assuming you qualify, how do you know if a refinance is the right thing for you?

The answer is a simple one. If you are a homeowner that is paying 4% or more on your mortgage – it’s definitely time to see if you qualify for a refinance! Not only is this a great time because the government is actively pushing interest rates down and banks are lending money but also you will see a huge dip in your mortgage payment.

It is important, however, to make sure that you protect your equity. There are several different ways to do a refinance and doing a no-cost one works very well. Keep in mind that purchasing a new home versus refinancing one are two completely different functions. When it comes to refinancing you want to be savvy about how you go about it. The first thing you need to do is find out the approximate value of your home. Your real estate agent will be able to assist you with that by doing a Comparative Market Analysis.

Though there will be closing costs associated with a refinance of your home, just like when purchasing a property, you can finance at a slightly higher rate and then save money since it’s a pure profit as opposed to if you had done a lower interest rate plus costs. There is also no prepayment period this way, making it the best way to refinance in our opinion.

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To find out if you qualify for a refinance or to learn the value of your home, contact us today! We are happy to help!