Fluctuating mortgage rates have many people wondering if it’s still a good time to consider refinancing their mortgage. Rates are higher, but does that mean the window for refinancing is closed? How can you know a good refinancing opportunity when you see it?
Is it a Bad Time to Refinance a Mortgage?
Though mortgage rates aren’t still at the historic lows of the early 2020s, they are still low in the context of history. Currently sitting at an average of 6.66% in October, it’s important to look at these numbers in the big picture rather than comparing them to the unheard low rates of just a few years ago.
For example, in 2000, interest rates averaged around 8%+ and in the 80’s it was common to find them as high as 15%.
It’s true that today is not as good of a time to refinance as it might’ve been earlier in the decade, but whether or not it’s a good time is mostly up to people’s individual circumstances and whether or not you can get a better deal.
What Makes a Good Mortgage Refinance Rate?
When looking to refinance a mortgage, you need to find the right deal that creates a better situation for you. The most common reasons for obtaining a refinanced mortgage are:
- Obtaining lower interest rates
- Shortening mortgage terms
- Converting mortgage types
- Raising emergency funds
- Lowering monthly payments
To find what could be a good deal, you need to identify the goal of your refinance. Do you just want to lower your monthly payment but don’t care about lowering your actual rate or shortening your term? Or do you want a shorter term mortgage? Maybe just a lower rate in general?
These answers will determine what to look for in a ‘good’ refinance rate, but generally you’ll want to find a deal that provides value to you in as many ways as possible and one that makes long-term financial sense for you. Take into account how much you’ve already paid, the value of your home, future financial events that could occur, and much more before deciding if it’s the right time or not.
To refinance your property, contact the Chicagoland title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.