Now is The Perfect Time to Refinance Your Mortgage! Here Are 3 Convincing Reasons Why
There are plenty of reasons why borrowers would want to refinance their mortgage. Some may be looking to lower their monthly payments, some may just simply want to switch mortgage companies and some may be looking for the perfect opportunity to lower their loan’s interest rates.
If you’re part of the last group of people, then you’re in luck. Now is the best time for you to refinance, according to various financial experts. As Forbes’ Joshua Pollard reports, mortgage rates have been on a consistent decline this year. And according to Bloomberg, rates have recently fallen way down to around 3.75%, compared to almost 5% just last November.
Considering all these, you may want to consider refinancing your mortgage now for these three reasons:
Get Ahead of Banks
According to Pollard, the interest rates may continue to go down further in Wall Street but banks from which people would borrow from aren’t really obligated to pass the benefits of a further decline to its customers.
This scenario has been seen before in history, said Pollard. What more, seeing very low interest rates, like what is happening now, actually makes banks nervous and thus, would ensure that they are compensated for lending at more risk.
As Pollard explains, interest rates usually go up when an economy is growing and only go down when something might be wrong in the economy. This said, if rates continue to decline materially from the low they are in now, that might already be a sign of an imminent recession.
And banks are well aware of this fact. So, while they might not raise their interest rate quotes, they would most likely do a reassessment of their current property and home price assumptions. This might mean that banks would become much stricter when it comes to underwriting the mortgage applications they receive.
No Better Rates Than Now
Current interest rates are reportedly nearing the lowest mortgage rates ever recorded in history. According to Pollard, today’s rates stand at 3.55% which is just a mere quarter of a percentage point from 3.3%, the lowest recorded weekly mortgage rate.
The latter figure was seen in 2012, just a few years after the last recession. With these in mind, Pollard believes that borrowers won’t find it worth it to wait for better rates and risk missing out on the perfect opportunity that present circumstances bring.
And it seems like a lot of other people thought the same. The Mortgage Company has reportedly recorded a recent 400% increase in applications for refinancing now compared to just half a year ago. What more, they also observed that a lot of the applications were coming from borrowers who purchased homes when rates were still in the 4% and 5% range.
More in Refinance
Former Uber CEO Travis Kalanick Just Spent $43 Million for the Bellagio Estate
A report published by the Wall Street Journal has revealed that Uber co-founder and former CEO Travis Kalanick has purchased a Bel-Air...May 19, 2020
Bruce Willis and Emma Heming Sold Their Caribbean Paradise for a Record-Breaking Price
Earlier this year Bruce Willis and his wife Emma Heming listed their Turks and Caicos property for $33 million, which almost broke the...May 14, 2020
4 Tactics That Could Help You Pay Off Your Debt Once and For All
A lot of people aim to spend less and save more. However, you may not be able to do that easily...May 14, 2020
Jodie Foster Sells Calabasas Home She Purchased with Her Late Mom
American actress, producer, and director Jodie Foster recently placed her Calabasas home on the market for $2.85 million. The currently-unoccupied home,...May 11, 2020
Ellen DeGeneres and Portia de Rossi Show Off Their House-Flipping Skills Yet Again with This English Tudor Home
American comedian-TV host Ellen DeGeneres and Australian-American model-philanthropist Portia de Rossi are known for their mad skills in buying and selling...May 8, 2020
Eva Longoria Bids Adieu to this French-style Villa She Bought from Tom Cruise
After five years of owning it, American actress, producer, and businesswoman Eva Longoria has said “adieu” to this sprawling Hollywood Hills...May 4, 2020
Lessons From Financial Advisors For Small Businesses Regarding PPP Loans
As emergency federal loans became in-demand among small businesses, financial advisors not just aided clients but also applied for support to...April 30, 2020
Scott Disick Relists Farmhouse-Style L.A. Home at a Cheaper Price
Most people probably know Scott Disick for his on-off relationship with Kourtney Kardashian and his stints in their reality show,...April 29, 2020
Check Out How Dr. Oz And His Wife Lisa Built Their Mansion From Scratch
It’s been 20 years since Dr. Mehmet Oz, along with his wife Lisa, started their hunt for the perfect house where they...April 28, 2020