Refinancing your home will save you money – if you do it at the right time. If you’re a homeowner, you’re undoubtedly hearing from people constantly telling you it’s time to refinance, regardless of the market conditions. Well, I’m telling you that right now is a GREAT time to refinance your home, and here are 3 reasons to refinance in 2017.
Reason No. 1: Home values are rising
Home inventory still hasn’t caught up to demand. They are trying to build, but after the recession slowed building and interest rates dropped sharply, there hasn’t really been enough new homes built in the last few years to satiate the demand for homebuyers. The upshot here is that your home is now more valuable through scarcity. You own something that people want. Even if you’re not selling it, that doesn’t mean the value doesn’t improve. A rising tide raises all ships, and rising home values means that your house is more valuable.
Reason No. 2: They won’t rise forever
Prices in 2016 went up 5% from 2015. All of our research points to only a 2-3% increase in 2017. While that’s still a great sign of health, it’s also a warning that the market can be unpredictable. While we’re experts, we don’t run the markets.
If you stay out of the market and wait too long, you could miss your chance to take advantage of low rates and increasing home value, as neither are guaranteed to keep on their current trajectories. Borrowers that wait will be borrowers with regrets.
Reason No. 3: You’re a lower-risk borrower
If you’ve been reading our blogs, you have been working on your credit score and developing the tools to have a better credit history. That way, you become a lower risk for lenders and a better candidate for a loan. You can qualify for a lower rate and save money. You also have built equity in the home, and proven that you can pay your mortgage. If you’ve built 20% equity, you can get out from under PMI (Private Mortgage Insurance) or use a Cash Out Refinance to pay off your higher interest debt.
When you’re ready to save money on a refinance with The Home Loan Expert, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?