There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here. Is it time to refinance? Click here!
Does your mortgage rate start with the number 5, or higher? If so, you may be throwing away money on a monthly basis. Right now, mortgage rates continue to be in the low 4%'s, but won't be that low for too much longer. Refinancing at a lower rate is very common among homeowners and a great way to reduce your monthly payments.
Deciding to refinance is an important decision, and you don't want to make a rash decision.
Here are 4 things to consider before refinancing:
1. What are your goals?
Determining your goals is one of the first things you should do. Refinancing your home won't pay off any debt you have, but will restructure it in a way that will help you save money, shorten your mortgage, or both.
2. Can you lock in a lower interest rate?
Rates are still very close to all-time lows. Getting a lower rate now can end up saving you thousands of dollars a year in interest.
3. Is it financially possible?
Refinancing your home comes with associated costs. It is similar to a home purchase loan, so there will be fees incurred. Having a lender walk you through the process should give you an idea of whether refinancing is a good option for you.
4. When is a good time to refinance?
Determining when to refinance often depends on how long you plan on staying in your home and what your personal and financial goals are. Typically, the fewer number of years you plan on staying, the larger the reduction of an interest rate you would need to be able to consider refinancing.
Refinancing your home can be very beneficial, but it may not be the best financial decision for you. Every home is different, so do your research before making a decision.
If you have any questions about refinancing, or if you have any other questions. Feel free to give us a call or send us an email. We'd love to help out!
