The economy is responding to the current uncertainty with some good news for borrowers: interest rates continue to fall.
Applications for loan refinances surged during this time.
The refinance index increased by 26 percent to close out the month of February, according to the Mortgage Bankers Association. The rate was also up nearly 225 percent year over year. In addition, the refinance share of mortgage activity increased to 66.2 percent in February.
If you own a home in the Seattle/Renton/Tacoma areas, you may be asking yourself if now is the time to take advantage of today’s excellent interest rates.
By refinancing your mortgage, you will replace the original interest rate with a more favorable one, which can lead to savings every month and for the life of the loan.
Homeowners can also leverage the equity in their homes. Applicants carrying a low loan-to-value ratio are more than likely to get a lender’s commitment for a new, lower-interest-rate loan. As a low-risk borrower, you can also refinance with a cash-out option, which can be used to make home improvements, pay off debt or go toward other investments.
A mortgage refinance can also free homeowners from the ups and downs of an adjustable-rate mortgage. If you want to switch to a fixed-rate loan, a refinance may achieve just that.
Please contact us to learn more about today’s competitive rates and how you can maximize the benefits of today’s economy with a mortgage refinance.