The Mortgage Refinance market is heating up again. As rates drop, many are looking to lower their payment, or perhaps like me, want to move to a fixed loan from an ARM Loan.
The question is...when? It feels like rates will continue to fall for a bit as this housing bubble is taking away liquidity from people. Already, according to the article, nearly 37% of homeowners could refinace and lower their payments.
This is also due to the slow housing market. Homes just aren't selling as no one wants to buy a the top or middle of a bubble. People are staying in their apartments or renting longer believing that they will be able to secure a better deal later.
My neighborhood is a great example. It is a very new subdivision and we looked at three houses. The other two are still on the market a year later! Home builder are desperate to unload.
Mortgage companies only way to make up for the loss of new home sales is to push refinance harder. Everyday I recieve at least two refinance offers. Eventually this will be great for us. As my FICO improves (thanks to our budget work) and rates fall, I might even be able to keep the same house payment and have a fixed loan.
The savings to your budget can be huge if you lock in better rates, perhaps $50K or more in lifetime savings.
So look carefully, step more carefully and weigh in all of the outside costs, but for a lot of us it is becoming a good time to look at saving big money.
2 Comments:
I can see why refinancing would be really attractive right now. We don't have a mortgage, so it's not something even on the plate.
But for other debt rates are coming down. Even if it is student loans or CC rates. It pays to check!
Thanks for reading Mrs M!
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