Should you refinance your home now? It could save you thousands
I came into the office today and I was looking at interest rates. We're working with a buyer here in Orlando and I noticed that interest rates have gone up quite a bit.
When we looked back at a blog that we did in December 2020, the interest rates were 2.7%. Now, they are already at about 3.25% which is half a percent increase. If you figure out what percentage increase that is, it is a 15% to 17% increase in rate, which is not all bad news though.
Currently, the market is hot. For you sellers out there it's still the best time to sell, we have been enjoying a seller's market. However, this increase in interest rates will hinder some of the buyers. In my personal opinion, this trend will cool it down just a little bit, which is going to be healthy. For buyers, it's still really tough out there to buy a property.
For people that are just living in their homes, it will be a smart move to take a look at your current interest rate. If you want, we have a couple of nice tools on our website where you can plug in a number, and see where your estimated rate would be based on the current rates versus the one that you have now. You never know, it could equal two, three, four hundred dollars per month in savings.
Now, if you don't want to start your 30-year financing over all over again maybe consider taking 20-year financing instead. Often those 20-years are at a substantially lower rate. You can keep the equity, pay off your loan quicker, and pay less interest with that 20-year loan.
There are a lot of options out there when it comes to refinancing your home. I still think current rates are really low but, they're bound to go up. If this is something that works for you I would recommend taking advantage of the opportunity. And, if it doesn't at least you know that you're on top of your game.
Go to our website and use a couple of our tools. You can find out what's your home worth, which will help you out a little bit. If you're interested in buying or selling in the Orlando area give me a call at (321) 340-2555 or send me an email at [email protected], I would love to help you.