If you are sitting around trying to determine if you are going to refinance your mortgage. It is pretty simple. If you plan on staying in your home for more than a couple of years, then you should probably give refinancing a seriously look. The current mortgage rates are about as favorable to homeowners as it has ever been.
Refinancing your mortgage can lower your current monthly payment, saving you thousands of dollars potentially. So, if you have been holding off on diving into the process, here are some reasons you may want to stop waiting.
Mortgage rates are at historic lows. The average interest rate on a 30-year fixed-rate mortgage is below 3%. These rates among the lowest we have seen in almost 50 years.
If you are currently paying a higher interest rate than what’s available today, now’s the time to look at whether you can lock in a lower rate with a refinance.
And if you are already deep into your existing 30-year mortgage, this also might be a good time to use a refinance to shorten your mortgage.
As of the writing of this article I would probably stay away from adjustable-rate mortgages for now. In an odd quirk of the current market, rates on fixed-rate mortgages have been dropping, while rates on ARMs are increasing.
While it’s impossible to predict exactly when interest rates will rise again, the one thing that’s certain is that they won’t remain this low forever. In fact, some industry experts are forecasting that rates may rise as soon as next year. So, if you are staying put for the next couple of years consider refinancing your mortgage, or at least take a serious look. You might find that its worth your while. Also don’t be afraid to shop around. There are plenty of mortgage companies that want your business.
By R. Jones
