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“Refinancing” is a scary word for many people. But that shouldn’t be the case for you. For many Inland Empire homeowners, refinancing can not only lower your monthly payments and help with your monthly budget, but it can save you thousands of dollars in the long run. Let me ease your mind a bit by dispelling some common refinancing myths for you.
Dispelling Refinancing Myths for the Inland Empire Homeowner
You’re Not Too Late
For years now, we’ve been hearing that interest rates will be on the rise. And while they have taken off recently, you’re still in a great position to drastically lower your interest rate. But you need to move fast. Rates are continuing to rise weekly. The general rule is if your mortgage interest rate is more than 1% above the current market rate, you should definitely consider refinancing. However, if your interest rate is near or below the current interest rate, you might want to wait it out for a bit.
It’s Not Too Time-Consuming
Another one of the refinancing myths I want to dispel is how long it takes to refinance. Don’t brush off refinancing just because it seems like a long and daunting process. An informational call with a lender to see how rates compare will only take a few minutes. There are also some programs for streamlining the application process. And besides, isn’t the amount of money you could save worth the time and effort?
ARMs Can be Refinanced, Too
Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck. But ARMs can be refinanced just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.
If you are considering refinancing your mortgage, contact your local bank first. Then, talk to other lenders about your options. Your bank is not the only lender offering refinancing. Terms and programs vary with each lender. So, it makes sense to shop around before settling on one.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
