The federal reserve recently raised interest rates, and if you have an Adjustable Rate Mortgage (ARM), it may be a good time to consider refinancing your home.
There’s no one-size-fits-all answer to whether your should refinance, so here are a few of the main considerations.How long does your introductory rate last? Most ARMs have a fixed rate for the beginning of the mortgage. This is an introductory period (usually 3-10 years) when your rate will remain constant before it can be adjusted.
If you have several years left in your introductory period, you can monitor interest rates for a while before making a decision. But if the intro rate is ending soon, it’s a great time to explore refinancing at a fixed rate.
How long are you staying? If you plan to sell your home soon—especially if you’re still on a fixed introductory rate—there’s not much motivation to refinance. But if you’ll be at your home indefinitely, you should consider your refinancing options. You could eliminate the stress of not knowing what your future mortgage rate and payments will be.
What’s your loan balance? The change in your mortgage payment will of course be determined in part by your remaining balance. If you owe $100,000-$200,000, a new interest rate may not greatly affect your monthly payment. On the other hand, if you owe $500,000, a change in interest rate could lead to a much higher payment.Other factors
The previous items are just a few of the factors that should go into a decision about refinancing. Changes in income and your current credit score should also be considered, so be sure to weigh your options and make an educated decision.
If you're considering refinancing, please call me.as a professional realtor I have multiple resources that can help you investigate further.
Author:John Wolf III Phone: 405-200-7028 Dated: February 19th 2016 Views: 517 About John: ...
View our latest blog posts in your RSS reader. Click here to access.
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
An accent wall can totally transform a room, taking it from boring and
"Michelle is a wonderful agent, she worked tirelessly to sell our home and for the price we wanted. She also helped us buy another property. To us, there is no one else, but her when it comes to Real Estate. Choose her and you will be happy you did, she is wonderful! She is the only Real Estate person we have ever worked with that actually listened to us, and worked for us. Thanks Michelle."