If you’re a homeowner who’s been waiting on the best time for a refinance, today provides a good chance to find the best deal, since the current refinance rates are at historic lows. As the nation recovers very slowly from the last recession, the mortgage rates will eventually head back up again, and now may be the best time for you to lock in a great rate.
You know from the level of rates right now that they can’t statistically go much lower, and mortgage lenders may advise that this is one of those almost-perfect situations in which to refinance your mortgage. You can cut hundreds from your monthly mortgage payment by securing a lower rate.
Louisiana mortgage companies, along with many top financial analysts, predict that the rates for refinancing will be ticking a bit higher soon, and may not come back down, if the economy shows stronger signs of improvement. Rates may also increase if the Federal Reserve discontinues its push-down of long term rates, or if the inflation rate starts to rise.
As the economy begins to recover more substantially, refinance mortgage rates may increase. If the economy falters even more, the rates could go down more, but experts believe that is not likely, due to the record lows that rates have already achieved.
Refinancing through mortgage lenders will begin a new term for your loan. Refinancing with a shorter term will allow you to pay off the mortgage sooner. In this case, it may cost more per month, since you went with a shorter time period for payoff. If you decide to refinance with a longer term, your monthly payments should see a substantial decrease.
The rates you get on refinancing will depend on your credit score, so if yours is good, you have a better chance of scoring a lower rate. It’s also wiser to contact your Louisiana mortgage company if you plan to be in your home long enough to see the positive effects of a refinance. If you’re planning a move, you may not be in the house long enough to fully recoup the expenses that are incurred when you refinance your home. These may include a credit check, processing fees and an appraisal, plus origination fees or points.
Your refinance may take 60 days or even longer to reach closing, although the period was closer to 30 days before the current housing slump began. Since rates are low, many borrowers may be rushing to refinance their mortgage, and this might slow down the average processing time. As rates will inevitably go up again eventually, you’ll still be glad you locked in at a low rate.