Why Now?
Fluctuating Mortgage Rates: An Opportune Time for a Check-Up
Recent developments following the Federal Reserve meeting have led to noticeable fluctuations in mortgage rates. Currently, the average 30-year fixed mortgage rate is at 6.15%, with 15-year fixed rates at about 5.55%, as reported by Mortgage News Daily. These changes are influenced by a variety of economic indicators that suggest potential shifts in inflation and Fed policies. This provides an excellent opportunity for homeowners to reassess their mortgage options, especially given the general increase in home equity observed across the market.
Higher Competition and Low Inventory
Benefits of Refinancing
- Lower Monthly Payments: Even a minor rate reduction can mean hundreds in monthly savings. If you’re locked into a higher rate, now is the time to see if you’re eligible for a better deal.
- Debt Consolidation: Refinancing can combine your mortgage with other high-interest debts, like credit cards, simplifying your payments and potentially reducing your interest burden.
- Access to Equity: Many homeowners have built up significant equity in recent years. A cash-out refinance lets you use that equity for major expenses such as home improvements or paying down high-interest debt.
- Shorter Loan Terms: Switching from a 30-year to a 15-year mortgage can save you thousands in interest payments over time.
Considerations Before Refinancing
- Upfront Costs: Refinancing typically comes with closing costs—usually 1.5-3% of the loan amount. You’ll need to weigh these against your potential savings to calculate if the benefits outweigh the costs.
- Length of Stay: If you plan to move soon, refinancing may not make sense as you may not recoup the upfront costs.
- Rate Locks: Rates fluctuate. While they’re currently favorable, locking in a low rate ensures you don’t miss out on potential savings.
Let Us Help You Find the Right Solution
We’re offering free mortgage reviews as part of our Mortgage Check-Up service. We’ll assess your current mortgage and help you explore refinancing options that fit your needs. Whether you’re looking to reduce monthly payments, consolidate debt, or tap into your home’s equity, we have solutions for you.
Ready for your Mortgage Check-Up?
Contact us today for a free review and discover how much you could save. Call us at 585-288-2930 to talk with a loan officer.
