If you own a home and haven’t taken advantage of refinancing to a lower rate or in the market to buy a home, the mortgage rates are at its best. I refinanced my home last year at 2.625% for a 10 year loan thinking that it was a great rate. And it is a great rate! One year later, I checked my credit union and saw that a 10 year loan is now 1.762%! I can’t tell you how much lower rates will go but I truly believe this is close to the bottom. 30 year and 20 year loans are also very low. It’s time to refinance.
Vaccines are being rolled out. Businesses are opening back up. Restrictions are relaxing or lifted. The economy will start to pick back up. Guess what else will pick back up? Mortgage interest rates. Before you refinance or buy a home, do your research. Crunch the numbers and see if it makes sense financially.
If you’re buying a new home, this could mean that you can afford a higher priced house since the interest rates are so low. Homes are selling fast and at record speeds so if you’re in the market, you’re going to have to act fast.
If you’re looking to refinance, work with a mortgage specialist and assess whether it’s worth it. There are fees associated with refinancing to keep in mind. Refinancing at a lower rate could mean you could go from a 30 year loan to a 20 year loan or 15 year loan shaving off years from your loan.
I thought 2.625% was low. 1.762% is unimaginable but I really did see it. At this rate, it’s very tempting to refinance again. I crunched the numbers and with my short term plans, it doesn’t make financial sense for me to refinance when you calculate the fees associated with it and then recouping those costs. These are unprecedented times financially. If you are able to take advantage of these low rates, don’t hesitate. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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