Guess what? Just when we all thought that interest rates were on their inevitable slow increase to what most people consider more normal levels, the news of the world has sent them down again. With employment increasing, GNP increasing, and profits up every economic indicator was predicting that interest rates would be moving up as well. But bad news from the Middle East, Ebola fears, economic uncertainty in Europe has sent rates back down to levels we saw at the beginning of the year. Which brings up the question:
Why yes it is. I am continually surprised at the number of people who haven't refinanced. We have been in an unparalleled situation with regard to interest rates for the past four years. They have been abnormally low. For those of you who may be new to the housing market a more normal state of interest rates would be in the high 5's to middle 6's - perhaps even a bit higher into the low 7's. When I bought my home in 2000 my rate was 7.25% and that was considered a low rate. So if anyone is still sitting on a pre-2010 interest rate in the 5's or 6's, for Heaven's sake -refinance! Now! Why wouldn't you?
There may be some folks out there that have adjustable rate mortgages that they acquired in the past few years. Now might be a good time to lock in that rate as a fixed rate. While your low adjustable rate may still be in effect, what will your rate be like when it amortizes next year or the year after.
Did you buy your home using an FHA product in the past few years? Many, many people did due to the prohibitive restrictions of conventional lending. Mortgage insurance on FHA loans is quite a bit more than mortgage insurance on conventional loans. Chances are if you purchased a home since 2010 using FHA you may be able to refinance and reduce your monthly mortgage insurance.
Did you have a job interruption or financial difficulty back in 2009 or 2010 that made it impossible to refinance? Enough time has passed that you should look again. What about combining an old second mortgage or HELOC into one new loan-now might be the time.
If you have a VA loan, VA offers a streamline refinance known as an IRRRL that doesn't require a new appraisal or income documentation. Costs can be rolled into the new loan. This is a great way for the veteran to lower his/her monthly payment.
For those that have paid extra against their principal or who think that their property value has gone up now might be the time to eliminate your monthly mortgage insurance-or take a look at lender paid mortgage insurance programs that will eliminate it by virtue of the loan program you choose.
Don't make me yell!
I hate it when customers are sad-so don't wait on the refinance. I know you are busy, I know there is are many priorities in your life, but I don't want to have to tell you that the ship has left port.
Louisville.com
Yeah, don't make me look at that face and have to tell you that rates have gone up so it doesn't make sense to refinance.
No comments:
Post a Comment