Why Homeowners Are Rushing to Apply for Refi Loans Right Now
If you’re thinking of refinancing your home mortgage loan, you’re not alone. Thousands of homeowners across the country are rushing to start applying for a refi loan. Applications are up as much as 79 percent compared to this time last year. So, what’s driving more homeowners to start looking at their options and searching for new and better home loans right now?
Interest Rates Are Incredibly Low
Interest rates have dropped over the last few months and they’re likely only going to continue. This means homeowners can save hundreds of dollars on their home loans in interest fees alone if they refinance at the new lower rate. Keep in mind that refinancing is only something you should look into if it’s going to help you out financially. Lower interest rates mean lower monthly payments.
The Job Market Is Unstable
Unfortunately, unemployment rates keep going up and that means more people are at risk for losing their jobs and the income they depend on. A refi loan can help lower monthly payments, freeing up cash immediately, but more importantly, it can help you use the equity you built in your house. This will give you more money to use as a safety net until the job market stabilizes again.
Loan Terms Are Better
Many buyers were only able to qualify for mortgages with variable interest rates and short repayment terms. This means their monthly payments were already high and as interest rates increased over the years, they paid more than they necessarily should have. If you find yourself in this situation, refinancing to a 30-year fixed-rate mortgage will keep your payments low and let you take advantage of historically low interest rates for the life of the loan.
It’s Tougher to Sell for Normal Prices
Many homeowners initially move into houses with the intention to sell them for a profit in the future. Unfortunately, the economic downturn that’s causing interest rates to drop is also preventing new buyers from entering the market. A refinance mortgage will help you get better loan terms since you can’t sell for top-dollar prices right now.
Are You Ready to Refinance Your Home?
If you’re looking to apply for a refi loan, don’t wait. Start exploring your options today and see for yourself the difference that a new loan at the current market interest rates can do for your budget.
Contact our team to learn more about our refinancing options or apply online and get started now.
