Time to Refinance Your Home

The Time to refinance your home is now. With the interest rates as low as they are, there is no time like the present to save yourself that few extra bucks on a monthly basis.

Heed my warning, interest rates will not stay this low. With taxes getting ready to go up because best ways to do that is to lower your housing expenses.

You may ask, how do I know that interest rates will not stay this low?

Well, since the Fed lowered interest rates to almost nothing for banks to borrow from banks, that rate can't go any lower. The other indicators are traded on the market. The treasury bonds rose due to the stock market dip, and the stock market will regain confidence which will cause the Fed to gently raise rates again so that the dollar can regain some strength.
The LIBOR index is also traded and has already had its dip.

Short answer, rates from the Fed have hit rock bottom, so, the only direction from there is up.

As the economy strengthens again, borrowing will resume and of course with a greater pool of borrowers. Supply and demand rules will apply, and thus banks will see a surge of fresh borrowers and with more money being sent out for borrowers, they will make borrowing a more stringent practice, and raising rates is one of the way they do this.

Economics has been confusing for many people, especially with the rules that are set in such a way as to make them confusing, so, in this article, as how it applies to the average homeowner, I will attempt to explain them more clearly.

The housing market has hit a dip. As you can plainly see, houses are going for cheaper than they were a couple of years ago. Now, if you bought your house on market, and paid lets say, $225,000.00 and after a year, the house was worth $275,000 and you didn't take out a loan for the "equity", you probably aren't going to hurt on a refi. You will probably be able to refinance your home for the 225,000 minus down payment. But, be careful, if you had a high time and financed your home to the end, your chances of getting a refinance loan are about as good as a snowball in fire.

But now, if you are paying 8% interest or even 7%, the chances are (determined by other factors such as credit, income , etc.) you can possibly sweep in at 5.5 to6.5% which will save you some money monthly and in the long run. Even if you held your mortgage for5 years, you are still saving money getting a lower interest rate because you would be paying less for the house overall.

And need I say anything if you are on an adjustable rate mortgage. Who ever sold you that mortgage put you in some hot water, and I'm sorry, but YOU NEED TO GET OUT OF IT INTO A FIXED MORTGAGE. The rate adjust every 12 to 24 months based on market and your adjustment may not be hurting bad now, but most ARMs (Adjustable Rate Mortgages) will adjust up to 10+% and you want to secure your rate from that eventuality. That can hurt badly.

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to get more information on refinancing and mortgages..

My name is Anthony Saviano and I am a licensed mortgage originator for Amerisave and I have been in Real Estate and Finance for over 10 years. I will be more than happy to assist you in getting the best program suited for you. Please feel free to go to my profile to look at rates.