Waiting For A Lower Mortgage Rate Could Cost You
Although home mortgage rates have risen somewhat since the historic lows of the recent past, they're still considerably lower than they have been for decades. September rates rose above 3% for the first time in many months, and they're still hovering slightly above that. Read on to learn what experts are saying.
Industry analysts anticipate that mortgage interest rates will continue to rise, albeit slowly. Since an increase of a mere half-point can increase your monthly payment by more than $100, if you're planning to refinance your home, waiting may cost you a significant amount of money. Those who are planning to refinance their homes should do so sooner rather than later. If you're looking for an outright purchase and want to consider the homes for sale in Lakeland, this is an excellent time to do so, and the higher the mortgage amount, the more you'll pay if you wait. Consider the following projection chart for a year-to-year comparison on a $350,000 mortgage:
Today's rate: 2.99% will result in payments of $1,474.00
Next year's projection: 3.55% will result in payments of $1,581.00
Waiting until next year can cost you $107 more per month than if you had refinanced or purchased at today's rate. This equates to an extra $38,520 in payments alone and doesn't consider the amount you'd pay in extra interest.
If you haven't refinanced within the preceding seven months, you should be eligible to refinance your home. Generally, the rules are that you need to have a minimum of seven months between refinancing actions and have made at least six timely payments. In some cases, one late payment of 30 days or more won't disqualify you from refinancing, but that's not true in all cases. Your Lakeland realtor will be able to provide you with more information.
Fixed Rates vs. Adjustable Rate Mortgages
Currently, fixed-rate home loans are about the same as ARMs, or adjustable-rate mortgages, and in some cases, the ARMs are higher than a fixed rate. This condition isn't projected to continue, so if you're considering a refinance, this is an excellent time to get one, especially if you're currently on an ARM.
If the idea of a refinance gives you nightmares about months of endless paperwork, it shouldn't. The refinance market has abated from this time last year when so many homeowners were taking advantage of the record-low rates, so your paperwork shouldn't take as long due to the fewer numbers of refinances taking place.
Don't Delay Any Longer
If you've been contemplating a refinance, now is the time to get started. If you're wondering what to do with the extra money you'll save each month, consider buying one of the homes for sale in Lakeland. Depending on your circumstances, you can rent it out, donate it, provide for an elderly relative, or do any number of other things. Many land tycoons got started during challenging economic times and became wealthy through their investments in land. Land doesn't depreciate; it always has value regardless of the structure that's on it. Call your Lakeland realtor today and get started on your refinance!