Right now is a great time to refinance. You can negotiate a better rate, which will lower your monthly payment.
People have been asking me a lot if it’s a good idea to refinance their mortgage right now. The short answer is yes, but let me explain why.
There are typically a couple of reasons people look to refinance. They want to lower their monthly payment, save money over the life of the loan, and sometimes they want to pull equity out of their homes to pay off other debts.
One of the main benefits of refinancing is lowering your interest rate. You want to reduce it by at least 1% or more. By reducing your rate, you will lower the monthly bill on your home, which allows you to pay additional principal and save a lot more money over the life of the loan.
BY REDUCING YOUR RATE, YOU WILL LOWER THE MONTHLY BILL.
Another benefit of refinancing is getting lower terms. You may not see a reduction in payment, but you may be able to pay off your loan much faster for the same price. Sometimes that is the best option.
If you’re a homeowner, one of the best incentives of refinancing is saving money. In the long run, saving money helps you save faster and build equity. If you ever need to borrow against your equity in the future, you will be able to.
Also, if you have an FHA loan on a previous bond loan, you can do a streamlined refinance and, in most cases, you can lower your rate while reducing your insurance at no cost out of pocket.
Getting a refinance is very simple. It’s not like when you are under the gun and looking to close quickly. Refinances can close as fast as purchases, anywhere from 30 to 45 days. It’s a simple process.
If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.