It’s now or never to refinance your home. With interest rates as low as they are, there is no better time than now to start saving a little more dollars each month. Please heed my warning: interest rates will not remain this low indefinitely. With taxes set to rise, one of the easiest ways to save money is to reduce your housing costs. You might wonder how I know interest rates won’t stay this low indefinitely. That rate can’t go any lower since the Fed cut interest rates for banks borrowing from other banks to nearly nothing. The other indicators are available for purchase on the market. Due to the stock market’s drop, government bonds increased, and the stock market will restore confidence, causing the Fed to gradually raise rates again, allowing the currency to regain some strength.Do you want to learn more? -Click to read more
The LIBOR index, which is also traded, has already taken a hit. The short answer is that the Fed’s rates have reached rock bottom, and the only way to go from here is up. Borrowing will continue once the economy improves, and there will be a larger pool of borrowers. Banks will experience an influx of new borrowers, and with more money being sent out for borrowers, they will make borrowing a more stringent practice, and one way they will achieve this is by hiking interest rates.
For many people, economics has been perplexing, especially because of the laws that have been put up in such a way that they are perplexing, so in this essay, I will attempt to clarify them as they apply to the typical homeowner.
The housing market has taken a turn for the worse. As you can see, houses are selling for less money than they were a few years ago. Now, if you bought your house on the market for $225,000.00 and it was worth $275,000 after a year, and you didn’t take out a loan to cover the “equity,” you won’t be hurting on a refi. You’ll most likely be able to refinance your house for $225,000 less the down payment. However, if you had a good time and financed your home all the way through, your chances of getting a refinance loan are about as good as a snowball in a fire.
But now, if you are paying 8 percent interest or even 7 percent , the chances are (determined by other factors such as credit, income , etc.) you can possibly sweep in at 5.5 to6.5 percent which will save you some money monthly and in the long run. Even if you keep your mortgage for five years, you will save money because you will pay less for the house overall.