Mortgage Loans Should I Refinance Now With Rates Increasing

Mortgage Loans Should I Refinance Now With Rates Increasing



Mortgage Loans – Should I​ Refinance Now with Rates Increasing?
When rates are rising should you​ consider refinancing your mortgage loan? When rates are falling this is​ a​ moot question .​
Of course you​ should consider doing a​ refinance whether it​ be a​ fixed loan or​ home equity loan .​
When rates are rising you​ should,​ in​ my opinion,​ only consider refinancing if​ you​ want to​ take cash out of​ the​ equity in​ your home or​ if​ you​ feel now is​ the​ time to​ lock in​ a​ fixed rate.
If the​ market appears to​ be on​ a​ longer rise,​ locking in​ a​ fixed rate now can save you​ money in​ the​ future .​
Homeowners with adjustable rate mortgages can rise at​ the​ end of​ the​ initial low rate ARMs charge for the​ first twelve months .​
This currently means your rate can rise 2.75 points or​ so based on​ your original agreement .​
This translates to​ much higher payments than you​ currently are paying.
When refinancing,​ you​ should take the​ actual cost of​ refinancing into consideration .​
the​ amount of​ money you​ spend to​ arrange the​ financing takes time to​ recoup .​
Are you​ planning to​ live in​ your property long enough for this to​ be a​ wise decision now? If not,​ I​ would suggest looking for very low cost home equity loans .​
If you​ have a​ good working arrangement with your Banker,​ he can perhaps get your costs reduced on​ a​ home equity line of​ credit or​ loan .​
Just ask,​ it​ does not cost you​ money to​ investigate the​ possibilities.
If you​ are in​ a​ position that requires you​ have a​ fixed mortgage payment to​ maintain your peace of​ mind,​ then you​ should do it .​
Rates rise for a​ while,​ then remain stable for a​ while before they start coming down .​
a​ shift in​ the​ market attitude and consumer spending will have to​ happen for the​ Fed to​ reduce rates .​

Don’t refinance your loan if​ you​ don’t have a​ good reason .​
Paying for a​ new vacation or​ luxury is​ not,​ in​ my opinion,​ a​ good thing to​ do with the​ proceeds of​ a​ loan when rates are rising .​
If you​ need to​ pay off debt,​ give it​ some thought before your proceed.
Ask questions,​ seek out your friends who are knowledgeable,​ talk to​ your bankers or​ investment people,​ just do something .​
you​ can reduce your mortgage payment or​ just get a​ fixed payment if​ that is​ your goal.




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