Mortgage Refinancing Can Still Be a Great Option
With inflation and talk of rising interest rates, customers are starting to ask if this is still a good time to refinance their mortgage. If you’ve been thinking about refinancing your mortgage, two significant factors could still be working in your favor.
First, mortgage rates remain at near historic lows, despite any possible increase in 2022.
And second, your home may be sitting on untapped equity due to increasing home prices in many Iowa markets. Your equity is the difference between your home’s value and amount you owe your mortgage lender.
This pent-up equity in your home can be put to work paying off or consolidating credit card debt, making home renovations, buying a new vehicle, paying for a child’s wedding, or used in any other way you see fit.
With mortgage refinancing, your monthly mortgage payments could remain about the same or possibly be even lower, depending on your current mortgage rate and length of the new loan.
Refinancing can also be used to convert an existing adjustable-rate mortgage to a fixed-rate mortgage with stable monthly payments.
For others, determining whether mortgage refinancing is a good option could simply be a matter of realizing you would be reducing your current interest rate by at least 1.00%
Everyone’s financial situation is unique, including how long you plan to remain in your home. One of our mortgage lenders can help you determine if refinancing is right for you based on your individual situation. Stop by for a free, no obligation consultation or give them a call to start crunching some numbers.
- interest rates
- mortgage loan
- mortgage refinancing