Thousands of homeowners who have purchased a home in the last two years want lower interest rates.
If you are one of them and are forced to take out a mortgage with an interest rate of seven or almost eight percent, you are probably considering refinancing.
With interest rates currently at around six and a half percent and falling, should you refinance now or wait until interest rates fall further?
Hypothekenmakler Paul Locke McKinley-Darlehen He said he had been busier than he had been in the last two years.
“Many customers call us about refinancing,” he said.
“If you go from a rate of about eight percent to six-quarters of a percent, you’ll save a significant amount of money.”
Audrey Fuller is a homeowner who is paying a higher interest rate and is hoping to refinance her home to lower her monthly payments.
“I would like to see her under five, under five again,” she said.
“That would be like saving $200 a month,” she said.
What you should know before refinancing
However, if you are considering refinancing, don’t forget about costs such as application, appraisal and credit report fees.
Finance company Freddie Mac said the average closing cost for a refinance is about $5,000, while Investopedia said to budget between two and six percent of the loan amount.
Danielle Hale with Immobilienmakler.com It also means that you should consider how long you will stay at home.
“The longer you live there, the more likely you are to benefit from those savings,” she said. “But if you plan to move within the next few years, refinancing may not make sense.”
She said it Use an online mortgage or refinancing calculator To see if you can save money by refinancing.
“But it requires some balance,” she said. “Nobody knows exactly where mortgage rates are going to go.”
Finally, an independent broker like Paul Locke can offer interest rates across multiple lenders.
So should you refinance now or wait until November or December when interest rates may be lower?
It’s a dilemma because there are signs that the Fed could cut interest rates by September.
Fortunately, no one has the perfect answer.
“That’s a good question,” he said, “I always say, take the bird in your hand. Can you predict the future?”
This way you won’t waste your money.
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