With mortgage rates at an all-time low, this is a great time to reach out to your favorite mortgage lender to discuss refinancing. Depending on how long you have been in your house and what your interest rate is, it might be possible for you to refinance to a lower rate, a shorter term and reduce your monthly payment all at the same time. Does all of that sound good to you? Discuss your specific situation with your mortgage lender to determine what makes the most sense for you.
One thing to remember is that there will be some closing costs to accompany refinancing your home but your savings will cover them quickly. However, if you are planning to sell your home this year, it may not make sense to refinance as you aren’t likely to recover those expenses before you sell your home.
While the Federal Reserve’s recent change to interest rates could cause mortgage rates to drop further, the rates haven’t changed yet because mortgage lenders have been backed up for some time as rates were already low and refinancing was popular because of that. In the past, maybe your lender has reached out to you when mortgage rates dropped to ask you about refinancing. Don’t expect to hear from them this time because they probably don’t have time to call you. If you call them though, they will make time to help you.
Refinancing your home can be a great way to reduce your housing expenses, add money to your savings or pay down other debt. If you are nearing retirement, add your savings to an IRA or another retirement account for the future. Younger people may choose to use their savings to establish a college savings account for their children. Another option would be to use the money you save over a period of time to make some updates to your home. If you need a recommendation for a mortgage lender, call us today and we can connect you with one.
The Janis Penick Team
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