Why Now Is The Best Time To Refinance Your Home

The housing market is beginning to recover and now is the best time for homeowners -especially those with high interest rates- to take advantage of low rates, long term fixed rate mortgages, and an open home mortgage industry. This blog post will explore how refinancing your current mortgage can save you money as well as put you in a more secure financial position.

Since 2008, there has been a major shift in the way people look at their homes. Homes are no longer seen as just something to occupy but rather it's value has increased due to its potential return on investment by selling or renting out the property. This means that homeowners are more willing to invest in their home and put money into renovations, remodeling, or even building a new addition onto their homes.

Mortgage rates are at a historic low

The real estate market is beginning to climb out of one of the worst recessions in American history. This has led many homeowners looking to refinance their current mortgage rates so they can save money each month and improve their finances. It's also a benefit for those that are looking into selling or renting out their homes because buyers will be willing to pay more for a home with low interest rates.

Re-financing can be used as an opportunity to lower your monthly payments

One of the biggest arguments that people have for not refinancing is that they want to keep their monthly payment the same as it's been for years. This argument is understandable, because it saves a lot of money, but if you can lower your current interest rate by a few points, you will save a significant amount of money thus lowering your monthly payment.

While it may not be something on everyone's mind, refinancing is one of the best ways to prevent foreclosure. It's important to remember that while getting behind on payments can sometimes happen, it's better to get caught up on your finances and be proactive in getting back on track than to wait until it's too late.

If you have any equity in your home, this could also be beneficial - when you refinance, you might get some of that money back .

Cash back at closing is what can happen when you refinance your home. This means that refinancing not only creates an opportunity to save money but also get some of the money back that you currently have in your mortgage. For example, if your current interest rate is 6% and you refinanced it at 4%, then that would cut your monthly payment by more than half, effectively paying off your home in less than half the time. If you have been making on-time mortgage payments for years, then refinancing gives you a chance to get some of that money back yourself rather than having it go into the pockets of investors and banks.

Recap

Look at refinancing not just as an opportunity to lower your current interest rates but to get out of a losing situation and into a position where you can save, invest, and feel better about your finances.

If refinancing your home sounds like it would be beneficial to you, then contact James Wagner here at WealthWise Mortgage Planning and find out if refinancing is something that will help improve your finances.