There seems to be a common misconception out there from financial gurus that refinancing your home, under any circumstance, is a bad idea. However, what these TV “talking heads” fail to realize is, that is just not practical.
If you have equity in your home, you may wonder how you can access it. You don’t want to sell your home, but you know you’ve earned a profit from it.
Homeowners can now refinance their mortgages without worrying about the added costs of a pandemic-era refinance fee.
The Adverse Market Refinance Fee was implemented by the Federal Housing Finance Agency (FHFA) in December 2020 to cover losses due to the COVID-19 pandemic. It added 0.5% to the cost of refinancing certain types of mortgage loans, which was passed on to borrowers in the form of higher interest rates.
15-year loans may appear to save money over 30-year loans because they have a lower interest rate, but you may want to have the flexibility of a 30-year loan.
Due to the fact that mortgage rates are still hovering near record lows, many homeowners are considering refinancing to a lower interest rate. This is a great way for homeowners to shorten the term of the loan, reduce the size of their monthly payments, and access cash for a home improvement project. On the other hand, there are some situations where it might be too soon to refinance an existing mortgage. What are a few factors to consider?