Mortgage loan rates are at their lowest they’ve been in years. This is great news for homeowners – it opens an opportunity to save money on a mortgage.
But if you’re a prospective home buyer, rising prices means it might not be the best time to buy. Here’s what you need to know.
Low mortgage loan rates means it could be the perfect opportunity to “refinance” your home loan. But what exactly does refinancing mean?
When you buy a home, you get locked into a certain interest rate on your mortgage loan. For example, loan rates in the ‘70s and ‘80s were brutal – they varied from 8%-17%.
Today, rates are about 3%. “Refinancing” means replacing that old, high-interest loan with a new, lower-interest one. This can save homeowners thousands of dollars monthly.
Refinancing gives homeowners a smaller mortgage payment and more flexibility with their debt.
Refinancing isn’t always a good idea, though. It’s important to research and make sure it’s the right move for you.
Buying a home can have its perks! But it's important to wait for that perfect moment. As for current homeowners, it could be a great time to jumpstart those New Year financial goals by possibly saving money with a refinanced mortgage!