Refinance your mortgage and save
As 2016 summersaults into summer, homeowners continue looking to lower their monthly house payments or save a bundle on interest. It’s been an interesting year so far. Is it possible to find a little windfall if you refinance your mortgage right now?
If you’re in the market to produce extra cash or are seeking a lower interest rate, take advantage of what appears to be a pretty perfect storm in the world of interest rates and homeownership. For starters, mortgage rates have taken a tumble in response to the July Brexit vote in England. So mortgages are still being offered at great low-interest rates.
Refinance rates aren’t much higher than the record lows they hit last summer. When you refinance your mortgage, you may actually pay less than homeowners who got new loans last year. By far, the best rates are for 15-year mortgage products, as rates have reached a four-year low.
Home values are still going up in the fertile areas of Asheville, North Carolina, and San Francisco, California. Houses are in high demand in these areas, where Zachery “Zack” Adam of GoPrime Mortgage, Inc. . (dba PrimeRate Mortgage Lending) operates. That’s good if you’re a homeowner because it gives your home value a boost, making it easier for you to get a better deal on refinancing. If, for example, you have at least 20% equity in your home and good credit, you easily can qualify for a new loan with a lower interest rate.
If you don’t have much equity and a less-than-stellar credit score, you may be able to refinance with an FHA loan that still may save you money from your existing loan arrangement. You may also refinance your mortgage with a VA loan, if you qualify. You don’t need any equity with these loans and only a moderate credit score to land one of the 30-year fixed mortgage loans. Also, as a veteran, you’ll never have to pay any monthly mortgage insurance.
What’s Your Best Deal?
When you’re considering the option to refinance your mortgage, it’s wise to take a little time, step back and talk to a professional like Zack. As a professional with Prime Mortgage Lending of West Asheville, he can walk you through the pros and cons of the process. There are a number of considerations to think about before you refinance your mortgage, not the least of which is how much closing costs you’ll have to part with and how soon you’ll be selling your home, if you know.
When all the stars align and you and your independent mortgage lender determines that you’re an ideal candidate for refinancing, then this may be just the perfect time for you to do it — especially if you’ve been locked into a higher interest rate and expect to retire in the home you’ve built for you and your family. Check with Zack. When the math works, you benefit.