The year is still young, and if you’re looking to get ahead with your personal finances for 2017 and a mortgage refinance is on the horizon, there’s still time to get the ball rolling. It’s never too late to refinance, but acting now while interest rates are floating just above all-time lows may very well save you thousands of dollars down the road.
If it’s been a while since you’ve signed on the dotted line for your mortgage or if you’re looking to enter into the housing market after a long hiatus, there are some helpful tips that will make sure you slam dunk your refi. Let’s take a look.
Score on the Fast Break
Act fast and take advantage of what the economy has to offer right now. 2016 was a down year for mortgage rates, but 2017 with the addition of a new President, healthier equity markets, and a more positive Fed will likely see interest rates begin to gradually rise.
Get a steal of a deal and score some major points by refinancing before interest rates correct. The mortgage market is waiting for a major rebound, and you wouldn’t want to miss your opportunity to cash in on some amazing financing deals.
All-In or Cash-Out?
In many instances, refinancing to a lower interest rate or shorter term and a conventional loan is a great way to save money, but did you know you can actually consolidate debt or take out cash for upgrades as part of your refi?
Cash-out refinances are a growing, practical way to consolidate high-interest debt obligations or make some needed home improvements without taking out separate bank notes. With a cash-out refi, you can get some needed funds to pay off debts or make crucial repairs and improvements to your home and pay it off along with your mortgage.
Consider Government Loans
If you’ve been in a conventional loan and are looking for other options with lower interest rates, don’t discount government loan programs such as FHA and USDA. While certain geographic and income restrictions may apply to these entities, the appealing sometimes lower-than-market interest rates can save a bundle.
While most mortgages will require some sort of mortgage insurance (PMI) in the event of default, the PMI on certain instruments may have outweighed the interest savings during your initial mortgage. Assuming that you’ve reached a positive equity to debt ratio on your mortgage, government loans may be the answer you’re looking for.
Be Offensive
Even if you are still upside down on your current mortgage, this doesn’t mean you can’t still refinance and improve the payments you’re making or the interest you’ll pay over time.
Find the Right Solution for YOU
No two mortgages are created equal, and not every mortgage solution will work for you. In a mortgage and financial market still recovering from the housing bust, more products are available and at your disposal than ever before which is exactly why finding the right one is of the greatest importance.
Let the professionals at Tidewater Mortgage Services do the legwork for you. Tidewater’s experienced loan officers will leave no stone unturned in order to give you the best possible refi available to you. You can even get prequalified the same day you call! Give Tidewater a call and get your refi rolling.
