3 Reasons You Can Still Refinance Your Mortgage
Updated: Aug 25, 2021
It’s not too late if you are among the 14 million people who could still save.
If you have been considering a mortgage refinance for months, you may think it is too late. Actually, the market is still historically good for mortgages, whether refinances or ones on new homes. You can certainly still refinance and score huge savings, as indicated by the Black Knight research and current rate information below.
Plus, refinances come in different forms. With the right professional advice and facilitation, you can find a refinance that matches your financial goals.
In July,... homeowners in the group could have saved an average of $290 per month, with a reduction in their interest rate of at least 0.75 percent.
Reason #1. 14 Million Could Still Save With a Refinance (More, Really).
Black Knight, a mortgage data analysis firm, studies the market for the number of high-quality potential mortgage applicants there are. In the refinance category, the company's number of eligible households was 13.8 million in July. At the time, homeowners in the group could have saved an average of $290 per month, with a reduction in their interest rate of at least 0.75 percent.
A refinance could very much be in your best interests (especially considering the below rate information). That is true whether you are in the above group or not, which must meet credit score and equity parameters that are nonessential to refinance approval.
Reason #2. The Rates are Still, Objectively Speaking, Awesome.
According to the Freddie Mac Primary Mortgage Market Survey, the national averages on 30-year and 15-year fixed-rate mortgages (FRMs) are, respectively, 2.86 percent and 2.16 percent. These rates are near all-time lows, based on 50+ years of tracking.
The national averages on 30-year and 15-year fixed-rate mortgages (FRMs) are, respectively, 2.86 percent and 2.16 percent. These rates are near all-time lows, based on 50+ years of tracking.
Reason #3. You Can Find a Refinance That Matches Your Goals.
A refinance will make sense for you if it fits your goals. Here is how financial goals match up with different types of refinances:
Homeowner wants to pay off the mortgage as quickly as possible — If you are really looking forward to being out from under the weight of a 30-year mortgage, consider a refinance to a 15-year one. Larger monthly payments will be built into a 15-year loan. However, you can save a lot of money with a reduced interest rate (see above).
Homeowner needs cash flow — If you are more concerned with being prepared for the unexpected and reducing your payment risk, a 30-year refinance makes sense.
Homeowner wants to do projects — For some homeowners, such as those investing in rental properties, it makes sense to do a cash-out refinance.
Get Your Best Rate
Considering a refinance? At Best Advantage Mortgage, we get to know you and your goals so we can tailor a loan to achieve them. Meet our team!