April Showers Bring May Flower & Refinance?
April Showers bring May Flowers.
Hope all the women had a great Mother’s Day. And everyone is enjoying the wether.
What is going on with the Prime rate?
Show I refinance my mortgage? What is a reverse mortgage and should I do it?
December 16, 2015 Fed Chairwoman Janet Yellen said the central bank would move gradually in raising rates further in coming years. The current United States Prime Rate, which went into effect on December 17, 2015, is 3.5%.
Experienced homeowners know their mortgage should be reviewed and perhaps refinanced from time to time. They also know the signs you should refinance your mortgage now.
Here are six signs you should refinance your mortgage:
1. You Want a Lower Rate and Payment
Though mortgage rates have been low for more than a decade, many homeowners still have a mortgage rate that’s higher than they can get today.
2. You Want to Lock in a Fixed Rate
A home loan with an adjustable or variable rate can save you money as long as rates stay low. If you’re concerned that rates – and your payment – might rise, you might want to refinance to lock in a fixed rate
3. You Want to Cash Out Equity
If your home is worth substantially more than your current mortgage balance, you might be able to refinance and take out cash to make home improvements, pay off other debts, finance a start-up business, buy an investment property or satisfy other needs or wants.
4. You Want to Consolidate Two Home Loans Into One
If you already have a first mortgage and a home equity loan or HELOC, you can refinance to consolidate those loans into one loan with one monthly payment.
5. You Want to Stop Payment for Mortgage Insurance
Mortgage insurance encourages lenders to offer affordable home loans with small down payments.
6. You’re Getting Divorced
A divorce decree might say that either you or your ex-spouse is solely responsible for your mortgage payment.What is a Reverse Mortgage
A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash.
Give me a call if you have any questions. Academy Mortgage is in our building and would love to help you with refinancing, reverse mortgage or even get you pre-qualified.
If you feel a friend would benefit from my advice, please pass my information along.