Although it may not be a buyer’s market right now with low inventory of homes available for purchase, it is the perfect time to think about refinancing your current mortgage.
“The housing market has really bounced back, along with prices, but there just isn’t as much to choose from,” said Woody Woodfin, regional mortgage sales manager in Birmingham for Progress Bank. “I keep hearing from real estate agents that people are hesitant to put their houses on the market because they are unsure as to what they can find for their move-up house.”
Woodfin says that mortgage rates are almost a whole point lower than this time last year, so if someone decides to not sell their house but want to remain in their home, then they should consider refinancing your current loan.
“I advise my clients to think about taking their current 30-year mortgage and moving it to a 15-year fixed rate mortgage,” he said. “You can often get something in the low three percent range, keeping your payment about the same and cutting 10 years off the term of the loan.”
Woodfin also says that it’s a great time to remodel a home as well.
“Using a lender like Progress Bank can help you finance any improvements you’d like to make to your house,” he said. “And that can increase the value of your home for resale.”
In addition, with mortgage rates as low as they are, there isn’t a reason to use an adjustable rate product right now.
“If you have an adjustable rate mortgage, there is no better time than the present to refinance,” Woodfin explained. “Call a local lender and ask them to run some numbers for you if you’re ready to refinance. Lenders will do that free of charge.”