March 10, 2020
Mortgage companies everywhere are pulling out all the stops to get you to refinance – and for good reason. Interest rates are at an all-time low. Just last week, the average U.S. rate for a 30-year fixed rate mortgage fell to 3.29%. According to Freddie Mac, this is the lowest rate ever recorded in a series that goes back as far as 1971.
Whether you’ve been thinking about refinancing your current home or not, now is certainly a good time to explore your options.
Here are a few to consider:
Refinancing at a lower interest rate should cause your monthly payment to go down. Having a little extra cash each month will allow you the flexibility to pay off other debts or contribute more to savings.
Another factor to consider is the term of the loan. Refinancing with a longer-term loan should lower your monthly payment, but you might end up paying more interest over the life of the loan.
On the other hand, reducing the term of the loan will allow you to pay off your loan sooner and pay less interest over the life of the loan, but your monthly payment is likely to go up.
With the current rates, now is a great time to consider moving from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. This allows you to lock in your payment and rate that will not change over time.
A cash out refinance allows you to use the available equity in your home to pay for home improvements, debt consolidation or other financial needs.
Refinancing might seem like a hassle but don’t be overwhelmed. Our expert team of mortgage coaches can help guide you through the process to ensure the decisions you make today will pay off (literally) for years to come.