Mortgage experts from Bills.com, are advising consumers to consider beginning a home refinance process now. Ethan Ewing, President of Bills.com, said “Market conditions have aligned to make this a perfect environment for home refinancing. Low rates and compelling opportunities to refinance into shorter term loans have arrived at the same time as large consumer demand.
The following five factors correspond to favorable market conditions for refinancing:
- Interest rates continue to hover around all-time lows, making it sensible for anyone carrying a higher rate interest loan to consider refinancing. With some exceptions, a one-half point to a one-point drop in rate will generally make refinancing worthwhile.
- Low fixed interest rates make converting from an adjustable rate loan into a fixed 15- or 30- year loan a smart move.
- The current difference between fixed 15-year and 30-year interest rates is significant, making refinancing into a shorter-term loan a great opportunity.
- FHA efficiency mortgages provide consumers with an opportunity to refinance into a loan that will help pay for home efficiency improvements. These loans are meant to provide consumers with a way to make energy efficient improvements to their homes as part of an origination or refinancing.
- Those homeowners whose equity situation has steadily deteriorated, leaving them with little no or negative equity in their homes, should ask their lender or broker for help. Most have some flexibility with government programs aimed at reducing rates for homeowners in weak equity positions.
Ethan Ewing continues, “Anyone considering a home refinance should move quickly to lock in rates now.”