With the economy in its current condition many people are having difficulty paying their mortgage, as well as their other bills. Whether one is seeing a reduction in their salary or their monthly mortgage payments have increased, it just may be a good time to consider refinancing.
With interest rates currently running 4.72% for a 30-year mortgage and 4.14% for a 15 year mortgage, the rates at are a low that hasn’t been offered in decades. If you have thought about refinancing, now would be the time to do so. Interest rates are at a point that mortgages will be much more affordable for those who do go the route of refinancing.
For those trying to determine if now the right time to refinance is, there are a few things to consider, including:
- What your reasons for refinancing right now are. Do you need to obtain a more affordable monthly payment, for example?
- What is the interest rate of your current mortgage, versus what the new one will be, as well as what the difference in your monthly mortgage payment will be?
- Whether or not your credit is in good shape, because it will be a determining factor in the final interest rate that you will qualify for.
- If you have equity in your home that you may be able to convert to cash. While most people have seen reductions in the value of their home, there may still be some people that can take advantage of this.
- The costs associated with refinancing. While there will be fees involved, such as closing costs, for refinancing, many people will find that refinancing is still a solid choice.
With so many people currently struggling with their mortgage payments, right now is a good time to consider refinancing. Historically low interest rates, for both a 30-year and 15-year mortgage, will help homeowners to keep monthly expenses down while freeing up funds for other important financial commitments.