Refinancing your mortgage is something many homeowners do at some point during the process of paying off their loan. There are a number of reasons to refinance, including saving money and using equity to make improvements on your existing home.
No matter what motivates you to refinance, you should recognize the factors that make right now the best time to do so. There are at least three major ones.
Why You Should Refinance Your Mortgage Now?
1. Rates are low
For the first time since the economy crashed more than four years ago, mortgage rates are low. It looks as if they will start to rise again soon and continue to do so as more buyers purchase homes and apply for mortgages.
If you want to refinance at a lower rate than what you’re currently paying, now is the time to do it.
2. Fixed-rate mortgage
If you have an adjustable rate mortgage, right now is the time to exchange it for a fixed-rate mortgage. The world is constantly changing, and when inflation hits, you have no idea how much your mortgage rate could increase if your rate is adjustable.
A fixed-rate mortgage is an excellent and justifiable reason so many borrowers are opting to refinance at the moment. You will be glad you did the next time adjustable rate mortgages increase.
3. Consolidate your debt
During the recession, many Americans relied on credit cards to get by when jobs disappeared and money became tight. Now that the economy is working its way to a more stable state, those same Americans are looking to get out from under their crushing debt.
Refinancing to use the equity in your home to pay off credit card bills can save you money. You’ll eliminate numerous monthly payments and interest rates in favor of one much lower interest rate. That’s an excellent reason to refinance now.
Where to refinance
This is a question many homeowners ask. Where you refinance your home is just as important as what you do with the money you obtain or save in a refinance. A reliable mortgage refinance service is imperative when it comes to saving money and getting the best rates. You need to know that your lender is reputable, trustworthy, and reliable.
Whether you’re looking for a lower interest rate to improve your home or just to change the type of mortgage product you currently have, now’s the time to do it. There’s always a possibility the rates will go up, which is why you should refinance now while they’re still low.