What Should You Know About Refinancing?
Refinance rates are historically low. They are so low that even the very good rates people got a year ago seem high in comparison. Of course, everyone is rushing to get on this train before it leaves the station and the market returns to some semblance of normality.
You may wonder if refinancing is the right thing for you right now. It is not right for everyone, and there are factors to consider.
How long do you plan to own your home?Every time you refinance, you pay closing costs, and it takes three to five years to pay yourself back before you begin to see savings from the new lower rate. You could end up paying thousands of dollars to save three or four hundred dollars, when all is said and done. However, if you do plan to stay in your home for many years, you could save tens of thousands with a rate and term refinance.
What kind of loan product do I have, and what is the best product for me? In refinancing, you want to look at the product you have, and weigh its long-term benefits and disadvantages against the product you are switching to. You can also save a lot of money by reducing your term, or the number of years you pay on your loan.
When refinancing, you should also look at the benefits and disadvantages of a mortgage verses a home equity loan. Home equity loans frequently take less time and money to close.
Questions? Call 503-588-0211 option 4 and talk to our Real Estate Lending Team.