Last night I posted that the 30 year fixed rate was at 5.625%…this morning, rates have been moving upwards (I’m all ready receiving new rate sheets from this morning for the worse). Now may be the time to consider taking advantage of rates being below 6%.
Just to recap…you should consider refinancing if:
- You have an Adjustable Rate Mortgage with the fixed period ending in 24 months or less.
- You have a 30 year fixed rate mortgage over 6.5%.
- You have a piggy back (second) mortgage and enough equity to restructure the debt.
- You are paying private mortgage insurance.
- If you are concerned about the value of your home declining now or in the future (there are loan to value limits on refinances).
If you’re concerned about your credit scores, FHA may be a great alternative for you as long as your credit history is fine.
If you have a prepayment penalty, it may or may not be worth refinancing at this time. The penalty is considered prepaid interest so it does qualify as deductible mortgage interest (a small consolation).
Questions? Ask! Don’t wait. Mortgage rates change constantly and these days, mortgage programs do, too. I’m here to help! If you are unsure of your scenario, please contact your trusted Mortgage Professional right away. It may be that you’re doing fine just where you’re at with your current mortgage and you need to do nothing…if so, at the very least, that 10 minute conversation with your CMPS provided you with a little piece of mind during these turbulent times in the mortgage industry.
PS: NOW may also be a great time to buy and take advantage of 30 year fixed rates under 6.00%!