Refinance are up 55% compared to this time last year! As mortgage rates this August remain at historic lows. In fact, according to the Mortgage Bankers Association, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent near the end of July, down from 4.2 percent at the same time last year.
Not only can refinancing a mortgage save you money, it can also help you pay off your home quicker, and will even unlock more equity in your home. Rates available to consumers are low right now and probably aren’t going to go any lower in the foreseeable future. The Fed has indicated that they implement rate hikes after the elections in November. So by December 2016, rate could be much higher.
If you’re looking to take advantage of today’s low mortgage rates, keep the following items in mind so your process is as effective and smooth as possible.
- Waiting too long. While rates have been low for some time now, with some experts predicting they’ll go even lower, the upcoming election may lead to unpredictability. With low rates like the ones we’re seeing today, time is of the essence, so be sure to refinance sooner rather than later.
- Not being prepared. When your lender calls or emails asking for information, don’t put it off. Have your documentation and financial information ready so that you can sign it in a timely manner. The last thing you want to do is plan to refinance your home when you’re going to be out of town on vacation, as this will most likely keep you from being able to get everything in place before you’re out of pocket.
- Adding to your loan term. When faced with refinancing, some people decide to add to the number of years of their loan term, lowering their monthly payments, but increasing the total amount of interest over time. Conversely, lowering the terms by five or 10 years can save you a lot, so if you want to change the years, make it lower.
- Forgetting closing costs. When you refinance a home loan, it’s important to remember that you’ll most likely have to pay closing costs, including a loan application fee, appraisal fees, title fees and attorney’s fees. Be sure you have this money on hand. Discuss closing fees with your Loan Originator.
Ultimately, partnering with an experienced professional is key. NJ Lenders Corp. is ranked at a Top 100 Loan Origination Company and has been assisting homeowners since 1991. With over 50,000 customers served, working with an experienced partner can often make all the difference when you are seeking advice and guidance through the transaction.