It’s no secret the the Puget Sound region has been experiencing a very hot real estate market… so hot in fact that it may be causing some home buyers to feel a little burned from competing with multiple offers as well as renters contending with rapidly rising rents. Recently KOMO 4 News shared that that Seattle currently has the nations hottest housing market. This is not only good news for those who are wanting to sell their homes, it’s also good news for home owners who may benefit from a refinance.
The rising prices of homes will actually help more people qualify for a refinance. This is because most refinances rely on appraisal to determine the value of the home. Appraisers use homes that have recently sold and closed in the neighborhood as “sales comparables” or “comps” to arrive at an appraised value. With higher home values, many will be able to refinance and not only reduce their mortgage rate, they may find that they are able to eliminate their private mortgage insurance (pmi).
I recently helped a home owner in Renton, refinance their first and second mortgage that they obtained when they purchased their home back in 2006. Because of higher home values, they were able to pay off both mortgages and reduce their total monthly mortgage payment by $450. They plan on using their extra monthly savings to start a college fund for their children. They also received a refund of their existing reserve account balance after closing.
Mortgage rates have been at extremely low levels. Fannie Mae predicts rates will trend slightly higher by end of the year. If you own a home in the greater Puget Sound area, it may be worth checking out refinancing – even if you have just refinanced or purchased your home in the last couple of years. You don’t always have to drop your rate a full point for a refi to pencil out. I am happy to provide you with a detailed written rate quote to help you decide if refinancing now makes sense for your personal scenario. Click here for a no-hassle mortgage rate quote for your Washington home. You have nothing to lose except a few minutes of time!