Mortgage Rates Are Still at Historic Lows; Is Now a Good Time to Refinance Your Home? – Guest Post

Mortgage Rates Are Still at Historic Lows; Is Now a Good Time to Refinance Your Home?

Guest Post by Mortgage Broker Toronto

 

With mortgage interest rates still staying down at historic lows, as banks rush to entice new borrowers to snap up homes that have been foreclosed on as well as those that just need to be sold by realtors, many of you are wondering if it’s the right time to refinance the home that you already own and have not lost to foreclosure. Well, as any major mortgage broker will tell you, it’s always the right time to refinance…if you can save money or otherwise get better terms for yourself.

 

Since mortgage rates remain at historic lows right now, there’s simply no question that it’s at the very least a good idea to check into a refinancing option with a mortgage broker. Now, the simple truth is that if you’ve got a good relationship with your bank, then that institution may be able to refinance your home for an unbeatably low rate. But a mortgage broker is your go-to institution if your credit isn’t stellar, or if you actually don’t have the best relationship with your bank.

 

I mean, perhaps your bank’s loan officer is the guy who got you into a pickle of a mortgage loan in the first place. By now, your loan was likely sold off to investors anyway. You may find yourself able to cultivate a better relationship with a loan officer at a local mortgage broker.

 

But beyond that, mortgage brokers have access to a multitude of different loan programs. Banks are more narrow in their selections. This is especially important if you want to refinance but don’t have the best credit. And credit rating is a gigantic matter in these post-bubble days.

 

There are a number of reasons why you might want to talk to a mortgage broker and see if you can refinance your home these days.

 

  • You want to shorten the term of your note. Who wants a mortgage obligation hanging over their head these days? Even if your monthly payment goes up, if you can afford that payment check out the long term savings to see if it makes sense.
  • You want to get out of a balloon mortgage before it inflates. Yes, it was probably a bad idea to start with…
  • You want to lower your monthly payment. Even if you don’t have the best credit rating now, if you can accept a longer term and take advantage of these historically low rates, you could put more money back in your pocket each month.
  • Debt consolidation. Debt consolidation is often the singular best reason to refinance one’s home. If you consolidate outstanding debts, you can save hundreds of dollars per month in total payments. This also pays off your included debts instantly at the time of closing. This can free up new revolving credit lines for you, and it can strengthen your credit score.

 

A mortgage broker can check into your credit rating and tell you what options are open to you, if any, for you to refinance and save money either short term or long term, or both together. Now is a great time to get into a fixed-rate loan if you’ve been holding onto a variable rate loan. Now is a great time to have other debts paid off and simplify your monthly bills, if possible. Unquestionably, you should see what you can find out with regards to refinancing now.

 

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