Mortgage FAQ: Is Now a Good Time to Tap Into My Home Equity?
August 24, 2016
"IS IT A GOOD TIME TO TAP INTO MY HOME EQUITY AND DO A CASH-OUT REFINANCE? I’D LIKE TO PAY OFF THE REST OF MY CREDIT CARD DEBT. I HAVE VERY GOOD CREDIT AND A DECENT AMOUNT OF EQUITY BUILT UP."
Although everyone’s financial situation and mortgage needs are certainly different, now may be one of the absolute best times to tap into that home equity that you’ve built up. Why now? In a nutshell, now is a great time because of the combination of rising home values and extremely low interest rates. Nationally, home values have risen over the past couple of years and that means many homeowners have seen their equity rise as they pay down their mortgage. That increase in home values—paired with the low interest rates we’ve been seeing for quite a while—has created the perfect opportunity for many homeowners to take advantage of the equity they’ve built up.
Also, many homeowners are able to refinance into a new mortgage that has an even lower interest rate than their current mortgage, which is an added bonus. Having good credit—as in your case—is helpful too, as you’ll be able to get the best possible deal (and a low interest rate) on your cash-out refinance. If you are planning on using a cash-out refinance to pay off credit card debt, just make sure you’re not going to fall back into the trap of running up that debt again.
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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