Mortgage FAQ: Should I Refinance Now or Wait Until Rates are Lower?
"WITH THE INTEREST RATES GOING UP RECENTLY, WOULD IT STILL MAKE SENSE FOR ME TO REFINANCE NOW OR SHOULD I WAIT UNTIL THE RATES ARE LOWER?"
Whether or not you should refinance depends on several different factors with the current interest rates being only one of those factors. You may still want to refinance your mortgage if you’re looking to change the term of your loan, such as going from a 30-year mortgage into a 10-year mortgage. You can also refinance in order to tap into some of the home equity that you’ve built up, consolidate your debt (cash-out refinancing) or remove the private mortgage insurance requirement on your current loan. As for interest rates, it’s not the current rates that matters, but rather it’s the interest rate on your current mortgage that matters. In other words, refinancing may be a good move if the interest rate on the mortgage you have now is higher than the rate that you’ll be able to get when you refinance.
Although the interest rates have indeed gone up a bit recently, many borrowers still have mortgages with very high rates and can certainly benefit from a refinance. As always, your ability to refinance will depend on your current credit profile so talk to your mortgage professional to see if refinancing is an option for you.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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