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Does refinancing your home loan make sense? The longer you wait for a straightforward answer, the more money you’re potentially losing.
Understanding the current financial climate can be overwhelming, but here are some reasons refinancing may be right for you.
Historically low rates
In 2012, rates hit a historic low of 3.35 percent, according to Freddie Mac. Since then, they have slowly ticked upward, but remain attractive at slightly 1 percentage point above that historic low. Compared to an 18 percent rate in the 1980s and an 8 percent rate as recent as 2000, today’s 4.5 percent average is looking pretty good.
Monthly savings
Even if you bought your home at a lower rate than today’s average, home values have seen a significant increase over the years. There’s a likelihood that you’ve gained substantial equity and are unnecessarily paying Private Mortgage Insurance.
By refinancing, you could be eligible to get rid of that PMI and save a large chunk of money on a monthly basis. This is contingent on an appraisal process and loan type. Contact your mortgage lender for additional information.
Flexible credit and income requirements
Don’t get discouraged by credit or income requirements. There are refinance programs catered to imperfect credit, zero to no equity and even fluctuating income as a result of self-employment.
Improved creditworthiness
According to MarketWatch, the average FICO score hit an all-time high at 704 in September 2018. If you’re one of the many who saw an increase in your credit score, you may qualify for a better rate. Take advantage of your financial improvement by contacting your mortgage lender to see what you qualify for.
Does refinancing your home loan make sense? The answer is probably yes. Visit Veritas Funding now to find the best refinancing solutions to meet your unique needs.