Interest rates were at a record-breaking low due to the pandemic. As the economy begins to recover, the interest rates start to stabilize. Average interest rates on most mortgage products are beginning to rise again as we have started seeing a bit more normality surface in the market.
Simply put, this is the last chance to refinance before interest rates go up! Thankfully, at Long Beach Home Loan, we’re here to help explain why now is the time to refinance your home.
Interest Rates on the Rise
You need to wait for interest rates to drop again back down to record-breaking lows. While rates might not currently be as low as in the past, you might be thinking you missed your opportunity. The truth is, you haven’t.
Before rates rise again to what they were pre-pandemic, there’s no better time than today to look into refinancing your home.
Benefits of Refinancing
You should consider several benefits to refinancing before making such a big decision.
Get Rid of Private Mortgage Insurance
If you initially purchased your home with less than 20% down, you were likely required to pay private mortgage insurance (PMI). PMI costs range anywhere from 0.5% up to 1.5% of your mortgage. You may be able to eliminate your private mortgage insurance entirely through refinancing.
Get a Fixed Rate
Another significant aspect of refinancing is that you can refinance to get into a fixed-rate mortgage if you currently have an adjustable-rate mortgage. Fixed-rate mortgages are beneficial if you plan on staying in your home long-term.
Get a Lower Rate
The top reason to refinance your home is typically getting a lower interest rate than you currently have. Lower rates can help reduce your monthly payments, depending on your new versus old mortgage duration.
You should also consider your current credit score while tracking mortgage rate trends. If your credit score has significantly increased since your original mortgage, you should potentially qualify for loans with much better terms than what you are currently in.
Refinance Your Home Today With Long Beach Home Loan
At Long Beach Home Loan, we have the same critical tools and mortgage products as the larger banks but are a family-based local business that focuses on serving our clients, not the corporation.
Long Beach Home Loan is a well-versed business with customized services to help you with all of your home loan advising needs, including refinancing. Call us at 562-340-9453 or visit us online for a FREE evaluation of your real estate needs.
Long Beach Home Loan
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