Why Should I Refinance Now?

December 4, 2024
Aaron Clowes
Refinancing

Why Should I Refinance Now? Is the Question of the Year

Let’s be real: life’s expensive. With interest rates hovering around 7%, many homeowners are looking for ways to lower their monthly payments or access cash through their home equity. The big question on everyone’s mind is, “Should I refinance now?”

The answer depends on your goals, but for many, refinancing is like getting a financial reset. Whether it’s locking in a lower rate, saving on monthly payments, or taking cash out for other needs, refinancing can make a big difference.

Top Reasons Homeowners Are Refinancing

1. Lower Monthly Payments

Refinancing can ease financial pressure by lowering your monthly mortgage bill. It’s like finding extra room in your budget for the things you love.

2. Better Interest Rates

Interest rates may seem high now, but if they drop, refinancing can save you thousands. Think of it as trading in an old phone plan for one that costs less but gives you more.

3. Cash-Out Refinancing

Need funds for a renovation or to pay off high-interest debt? Cash-out refinancing lets you tap into your home’s equity without selling. It’s like unlocking a treasure chest you didn’t know you had.

Economic Conditions: Timing Is Everything

Interest rates might seem daunting at 7%, but the Federal Reserve could lower them in the near future. According to experts, homeowners should watch these trends closely. Timing matters, and knowing when to refinance is key.

Millennials Are Taking the Lead

Millennials aren’t just refinancing; they’re doing it smartly. Using apps and online tools, they’re comparing rates, getting preapproved, and making informed choices. If you’re wondering, “Should I refinance now?” take a page out of their book and explore your options digitally.

How to Get Started

Check Your Loan Terms: Understand your current rate and balance.
Review Your Credit: The better your score, the better your refinancing options.
Shop Around: Not all lenders offer the same rates—compare to find the best fit.
Get Preapproved: Start your journey HERE.
Lock in Your Rate: Once you’ve found a good deal, lock it before rates shift again.

When Refinancing Makes Sense

Refinancing isn’t just about lower rates; it’s about aligning with your financial goals. Whether you want to save on payments, shorten your loan, or fund a project, refinancing can help.

But don’t rush. Make sure you crunch the numbers and weigh the costs.

Conclusion

So, should you refinance now? If you’re looking to save, shorten your loan, or cash out equity, refinancing might be the right move. Don’t wait too long—opportunities like this can slip by.

Ready to explore your options? Talk or text us at 916-465-6639, email at hello@newwaymortgage.com, or schedule an appointment HERE. And don’t forget to check out our YouTube channel at New Way Home for tips and advice.

FAQs

1. How do I know if refinancing is worth it?
If it saves you money or aligns with your goals, it’s worth exploring.

2. What does cash-out refinancing involve?
It’s a way to access your home’s equity for big expenses or financial goals.

3. Can I refinance with bad credit?
It’s possible, but you’ll likely face higher rates. Work on improving your credit first.

4. Should I refinance now if I plan to move soon?
If you’re moving in the next few years, refinancing may not pay off.

5. How can I get preapproved for refinancing?
Start your application HERE to see your options.