What’s odd about the public’s reaction or shall I say inaction to the low rates is that experts I’ve talked to say you can save more by locking in a low interest rate today on a new house than people saved by taking advantage of the $8000 tax credit. Yet, housing numbers went up during the tax credit. They’re not doing much of anything right now.
You can save hundreds of dollars a month by refinancing. Click here for current rates in your area.
I know early on when rates dipped low, and I’m talking 2 years ago, people were experiencing appraiser sticker shock. They paid an appraiser $250 or $350 only to find out they couldn’t refinance because that foreclosure down the road hurt the value of their home.
While housing values are still lower than what they were, it might be worth it to risk the $250-350 investment to see if you can save hundreds of dollars a month.
It’s so odd that the refi game is not getting more publicity than it should. Personally, I think it’s the appraisal issue. Homes have just lost too much value, and people are scared to find out what their home is worth.
Mortgage brokers are honest. They’re telling people there’s never been a better time to refinance or buy. However, they’ll tell you straight-up that you should expect a different experience. Watch below to find out what else has changed.
Cutting refinancing costs
Refinancing deals are more labor-intensive and they’re not as cheap as they once were. The ballpark cost could be between $4-6,000 according to a Cleveland mortgage expert I spoke to, although Bankrate puts the fee a little lower for the Northeast Ohio region.
Don’t panic if you have an ARM
Because these are unprecedented times, for once you don’t have to panic if you have an ARM. Your rate may actually be going down! You’ll want to refinance, though, if you don’t want to play the market and worry about future payments. For now, there’s no indication, though, that rates are going up and your ARM rate may be lower than what you can get refinancing.