Is Now Still a Good Time to Refinance?

No matter how you pronounce it, refinancing your home can be a smart financial decision but with interest rates currently on the rise you might be wondering if it's still a good time to do so. 

While interest rates are on the rise, they are still historically low compared to where they have been in the past. If you have a high-interest rate on your current mortgage, refinancing could still be a smart financial move. Even with a slightly higher interest rate, you could still save money over the life of your loan by securing a lower rate or changing your loan term.

Let’s explore some of the common concerns homeowners now have with higher interest rates and provide some guidance on whether now is still a good time to refinance.

Concerns About Higher Interest Rates:

Increased Monthly Payments: If you currently have a low-interest rate on your mortgage, refinancing at a higher rate could result in increased monthly payments. This can make your mortgage less affordable and put a strain on your budget.

Additional Closing Costs: Refinancing your home comes with additional closing costs, which can include appraisal fees, title insurance, and origination fees. If you're refinancing at a higher rate, these costs can eat into your savings and make the decision to refinance less attractive.

Limited Lender Options: As interest rates rise, some lenders may become more selective about who they approve for refinancing. This can limit your options and make it more challenging to find a lender who will work with you.

 If you're concerned about the costs associated with refinancing, it's essential to carefully evaluate your options and shop around for the best rates and terms. Working with a trusted lender can help you navigate the refinancing process and ensure you make a decision that's in your best interest.

In conclusion, while higher interest rates may give you pause, it's still worth exploring your refinancing options to determine if it makes financial sense for you. With careful consideration and guidance from a knowledgeable lender, you can make a decision that will help you achieve your financial goals.

We can help! 

-Mike Krukowski Real Estate Agent Lannon Stone Realty LLC