February 2020 Mortgage Market Update - Refinancing: Good Idea vs. Best Idea
As you’ve probably already heard, mortgage rates are down and home values are on the rise. Due to this, many people are looking at refinancing to lower their mortgage payment by lowing their interest rate.
Before you jump into a refinance, the first question you need to consider is how long do you plan on staying in your current home? It’s really important that you understand the recoup period. You might be saving $200 a month but if it costs you $4000 to do the loan, and the lender adds that to your mortgage, your not technically saving money till a few years from now. So be sure to consider the cost of doing the refinance and the length of time that you plan to keep the home.
Current Mortgage Rates
Comparing the average rates over the last 5 decades, we are looking at some of the BEST RATES in history. If you haven’t looked into refinancing or possibly purchasing a new home, now would be a great time to have that conversation. We are heading into spring when a lot of homes usually come to the market.
As always, thank you so much for your continued business. I hope you have a great month and if there’s anything you need, please let me know.
