Well it seems to be the perfect storm… Home values are up, rates are at rock bottom and the unemployment rate is low! In early 2019 we thought 3%s on a 30yr loan were long gone, however the one constant in the financial markets is volatility. In this case it’s presented a great opportunity to refinance for many reasons!
Here are a handful of common refinance motivations, and how we’d determine if there’s actual benefit to a refinance:
-Remove mortgage insurance – When will it fall of naturally? Do the savings justify the costs?
-Reduce your rate – Would you see benefit within a year? What are some strategies to accelerate the cost recovery period?
-Reduce your term – Would you see benefit within a year? What are some strategies to accelerate the cost recovery period?
-Pull cash-out to pay off high interest debt – What’s the interest rate of the debt? Can we reduce the term of your mortgage, payoff debt and keep you payments similar while saving you interest?
-Pull cash-out to improve your home – Will the improvements offer an increased home value?
To explore options, please start by submitting the form to the right (“Let’s Get Started”).
The chart below gives a summary of rate activity over the past year and a half. As you can see, we’ve seen substantial improvement.
(10yr treasury, 8/29/2019)
If you think you could benefit from a refinance, we’d be happy to help! Our approach is ethical and straight forward, with our focus placed on long and short term benefit for you as our client!
Sierra Pacific Mortgage