Home Mortgage Rates are Helping people move or refinance

Refinance or Sell?  Most homeowners are faced with some financial decisions that can help them financially for years to come!

It's hard to find fault in a market that has such low mortgage rates. You might be able to refinance your existing mortgage, which would result in lower payments for your home and savings. If you've been in a property for a while, it may be time to consider selling or refinancing. This is especially true if you want to sell your place and buy at today's low rates.

Sell, Move Up, and Downsize

Many homeowners are rethinking what they need in a home. For some, remote work brought new needs for additional space. For others, moving to a lower cost-of-living area or downsizing was needed to accommodate their lifestyle/life goals and interests. If you’re considering either of these, now may be the time to move. Here are some reasons why:

The chart below shows average mortgage rates by decade compared to where they are today: Today's rates are below 3% on average, but experts forecast rates to rise over the next few years.

Chart of mortgage rates by decade 1970's to 2010's

If you are unhappy with the interest rate on your current mortgage, now might be a good time to make a move. Lower rates mean you can purchase more house for less money and still maintain an affordable payment.

Buying a home means increasing the level of your monthly payment to accommodate for economy-wide rates. In this scenario, buying as you go increases your chances of owning the home sooner and saving money on a mortgage.

Chart of buying purchase power by mortgage rate

Breaking It All Down:

  • Let's break down a $300,000 mortgage below and using our chart:
  • When mortgage rates rise, monthly payments for homes become more expensive.
  • Lowering your payments is easy as long as you get that extra bit of cash on hand. And the upgraded home you have dreamed about lately for a decent payment. 

Home prices have been rising and so you’ll need to check out a lower priced home that has the same amount of home for your money.

You might be looking to buy or sell a home soon and want to make sure there are no missed opportunities. With the ongoing interest rate drop, now is the time to get into a new house. Even small shifts can help you financially, so what are you waiting for?

Refinance

A lot of people are considering refinancing their mortgage right now. It can provide a lower payment and lower your current mortgage term to lock in one of the best rates available. If this all sounds good to you, consider taking on one now!

Bottom Line

We have low interest rates today on our loans on many states. So it might be a good time to capitalize on them and see what loan is best for your personal & professional needs. Let's talk!