Mortgage rates are back on the rise now after the dollar has begun to strengthen, but it is not too late to refinance your house and save a bundle. Interest rates on 30 year mortgages are above 6%, but the end of low interest rates may be just over the horizon. Perhaps it’s time for you to look at refinancing your home.
The key driver behind low interest rates is inflation. Many analysts believe that the Federal Reserve will begin to raise interest rates again later this year to fight the growing threat of inflation. They were lowered in the first place to spark the purchase of credit by increasing the yield, but that threat is now mostly past us.
Now is a great time to seek a refinancing as rates are still at historical lows. Getting in your things now means you will beat the wave of applications that generally flood the market when rates dip slightly. By preparing your bank statements and tax returns right now, you can keep one step ahead of the rest.
Many people are afraid that their house will be appraised lower than they thought now that the housing market has turned. However, there are some steps you can use to make sure you get a fair valuation. First, make sure that your lender doesn’t use automated valuation models, but rather sends an actual appraiser to your house.
Secondly, make sure you get a full appraisal that involves someone coming to your house and asking questions. If you have a good credit score, the lender is more likely to use a “drive-by” appraiser because they don’t need to take full stock of your collateral.
Finally, seek out the lender who you have your current mortgage though as it could save you a lot of paperwork right off the bat. Also, search for lenders are a bank or credit union rather than using a broker as it could save you a lot of money in the long run. A recent study showed that these savings could be significant.