Though mortgage rates are somewhat in flux at the moment as a result of the COVID-19 (Coronavirus) crisis, there is a chance that today’s rates are lower than what your current mortgage rate is.
What does that mean for you?
Well, if your current interest rate is lower than what today’s rate is, then you may want to consider refinancing.
The reason why is that refinancing into a lower rate could free up some additional cash flow for you. During these uncertain times, it is probably a good idea to shore up as much money as you can on a monthly basis.
Even a small decrease in your rate could make a noticeable difference in what you are spending monthly on your mortgage. Additionally, it can help you build up equity faster in your home. Equity is the difference between what you owe on the house and the market value of the house.
Refinancing also opens the door to changing the terms of your mortgage. For example, you can switch from a fixed-rate mortgage to an adjustable-rate mortgage or vice versa. It just depends on your particular financial situation.
Additionally, you may be able to lower your loan-to-equity ratio and thus, remove private mortgage insurance. You are likely paying for private mortgage insurance right now if when you first purchased your house you had a down payment of less than 20 percent. Depending on how long you have owned the house, you may have built up enough equity to have that removed, which could reduce your monthly spend even more.
You may have many questions about the refinancing process when it comes to eligibility, the steps, and paperwork. It is important to know when it may or may not be a good time for you to begin the process. Every situation is different, and that is why you should know that our mortgage professionals, who have decades of experience, will be here to answer any questions. For any real estate legal questions, we can also offer mortgage consultations with real estate attorneys.
We’ve got your back.