Mortgage FAQ: Is It a Bad Idea to Refinance Now?
"WITH THE RECENT RISE IN INTEREST RATES, IS REFINANCING RIGHT NOW A BAD IDEA? I’D LIKE TO DO A CASH-OUT REFINANCE TO PAY OFF SOME DEBT, BUT I DON’T KNOW IF I SHOULD WAIT OR NOT."
This is one of the most common questions that lenders and brokers get whenever the interest rates go up—even if it’s just a small rise in the rates. The answer to that question all depends on your specific financial needs and your reasons for wanting to refinance.
Yes, refinancing right now to get a lower interest rate may not be feasible unless you have a mortgage with a higher interest rate than what we’re seeing right now. However, there are plenty of other good reasons to refinance.
You may want to refinance 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 may also want to refinance to remove the private mortgage insurance requirement on your current loan or—as in your case—tap into some of the home equity that you’ve built up in order to pay down some of your debt.
These are all valid reasons for refinancing right now and it comes down to what your financial goals are. Keep in mind that your ability to refinance will depend on your current credit profile, so you’ll need to 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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