If you have been watching the news lately, you will see that interest rates are rising. While everyone paints a dark picture that the chance to refinance your home has passed, that is absolutely untrue. Let me explain.
Most experts will say that you need to save at least 1% in rate before it is worth the cost. While this is a good generalization, every situation varies. What if you have an adjustable rate loan that is getting ready to reset? Do you know how much it can increase at each adjustment and what the cap is? In other words, is it possible your rate is currently at 4% but could increase to 9% in the near future? Are you better off locking in a fixed rate mortgage at 5% for example?
What about doing a no out-of-pocket refinance to a better rate and then continuing to make the same payment? This is one effective way to pay off the loan sooner and save tens of thousands in interest. Would it be worth it to spend a couple hours meeting with me, gathering & signing the paperwork and then reapplying for your exemptions to shave a couple years off your loan?
Of course, your situation is unique to you and deserves to be looked at that way, but my point is to not believe everything you hear on TV or radio, or even read in the newspaper. How long you plan to stay in the home, as well as other conditions, will determine whether or not this makes sense.
If you have questions or are considering buying or refinancing, contact me for a no charge, no obligation consultation. Take a few minutes to find out what options you have to help solidify your financial future. I can be reached at 219-695-0369.
Scott
Your Indiana mortgage expert specializing in FHA, VA, and USDA Rural Development loans.
Need cash to buy or refinance a home and make repairs or improvements? Ask about our FHA 203(k) Rehab loans.