Why the Time to Refinance is Right Now

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Description

The record low benchmark interest rate for 30-year fixed-rate mortgages occurred back in December of 2012. That rate hit a very low 3.5%, spurring homeowners across the country to refinance their mortgages, lower their monthly payments, and save thousands on interest throughout the lives of their loans. Right now, benchmark interest rates are only slightly higher than the record low at 3.54%, which means it’s time to consider refinancing. Visit: http://www.ratewinner.com

Informations

• Publié par: ratewinner
• Publié le: 14 octobre 2016
• Nombre de lectures: 1
• Langue: English

Extrait

Why the Time to Refinance is Right Now The record low benchmark interest rate for 30-yearfixed-rate mortgagesoccurred back in December of 2012. That rate hit a very low 3.5%, spurring homeowners across the country to refinance their mortgages, lower their monthly payments, and save thousands on interest throughout the lives of their loans. Right now, benchmark interest rates are oŶlLJ slightlLJ higher thaŶ the reĐord loǁ at ϯ.ϱϰ%, ǁhiĐh ŵeaŶs it’s tiŵe to ĐoŶsider refiŶaŶĐiŶg. Who Can Benefit?

According to Bankrate, there are more than 4.3 million homeowners across the country who could benefit significantly if they refinanced right away, and there are 170,000 people who could refinance specifically under the Home Affordable Refinance Program, or HARP. This means that millions of people who are paying higher interest rates can reduce their overall debt as well as the size of their monthly payments by refinancing their mortgages to loans with lower interest rates.

What About Europe?

There are soŵe proďleŵs ǁith GerŵaŶLJ’s DeutsĐhe BaŶk aŶd its fiŶaŶĐial streŶgth, ǁhiĐh has led to ŵassiǀe sell-offs of shares in recent weeks.While it isŶ’t edžaĐtlLJ oŶ the ǀerge of Đollapse, it ĐertaiŶlLJ isŶ’t fariŶg ǁell.Adding to that is the plummeting stock prices for the Royal Bank of Scotland, the ongoing Brexit discussions, and quick purchases of American bonds that are considered safe, low-risk investments. Because of all of the buyers, Treasury yields went down, and mortgage rates followed.

Is the New Rate Temporary?

WheŶ ďuLJers floĐk to AŵeriĐaŶ ďoŶds aŶd seĐurities as a safetLJ Ŷet for their iŶǀestŵeŶts, it’s ofteŶ ǀerLJ short-lived. Mortgage rates go down, and then they rebound again. However, finance experts claim that the global economy is truly struggling, yet the American economy continues to fare well. The global decline is expected to last a while, so these experts believe the low interest rates will, too. In fact, even if the Federal Reserve were to raise the overnight interest rate tomorrow (and it is not projected to do so),mortgage ratesareŶ’t likelLJ to iŶĐrease aloŶg ǁith them automatically.

Why You Shouldn’t Wait

Although most real estate and finance experts do agree that interest rates will remain low at least until the end of the year,theLJ also saLJ LJou shouldŶ’t ǁait to refiŶaŶĐe. ThiŶgs ofteŶ ĐaŶ aŶd do ĐhaŶge oǀernight, and although the

American economy remains very stable when compared to the state of the global economy, that may not be the case Ŷedžt ŵoŶth or eǀeŶ Ŷedžt ǁeek. It’s iŵportaŶt to shop arouŶd Ŷoǁ to fiŶd LJour loǁest rate; after all, the sooŶer LJou make the decision to refinance, the sooner you can lower your monthly payments and start shaving thousands off of the overall cost of your loan.

Mortgage interest rates are at near-record lows, and there are millions upon millions of people across the United States who can benefit fromrefinancingas soon as possible. It’s alǁaLJs a great idea to take adǀaŶtage of dips iŶ rates, especially when forecasters predict that the Federal Reserve may raise its overnight rates at the end of this year or the beginning of next.