Now Is A Good Time To Consider Refinancing Your Mortgage
The increasing home prices, the wave of low mortgage rates and president Obama’s decision to lower Federal Housing Administration fees are a clear sign that this is a great time for you to refinance your mortgage.
Recently, president Barack Obama said that FHA would drop the annual fees for a typical borrower at a loan to value between 95%-96.5% to only 0.85%, from 1.35%. Since the beginning of this year, the mortgage rates have seen a continuous drop, spurring mortgage applications.
Why is this the best time to refinance?
Over the past years, homeowners had several opportunities to refinance, but analysts believe that this is by far the best one. Almost 7.5 million homeowners who have 30-year loans with fixed rates can now refinance. If you missed the other opportunities to refinance or you simply did not qualify, this time, you might be luckier.
There are many reasons to refinance. Some would include helping homeowners decrease their rate, remove mortgage insurance, lower mortgage insurance in the case of the new FHA guidelines, shorten the term of the loan, or even take cash out of the home to remodel or pay off existing debt.
Which are the benefits of refinancing?
Besides the fact that your rate could drop, another advantage would be the possibility to decrease your monthly payment or pay less in total interest for the entire loan. Another option would be to refinance into a shorter loan, maybe a 15-year fixed rate mortgage. This type of loan comes with a lower payment each month and helps you save thousands of dollars in the long term.
As home values have revived in the recent years, you might find out that your home’s value has increased. The factors to be taken into consideration are how much you bought your home for, where it is located and when you bought it.
You might be wondering if you should wait for the next opportunity. Analysts advise that, if you see something that might work, you should go ahead and grab it, because it will not last forever. Analyze your situation, ask the advice of a mortgage professional, and make the decision that best fits your needs. Contact Maureen Martin and make a move to refinance today.