It is no secret that the economy is down. Homes prices are down also. Luckily prices of Cabot homes are not down as much as other areas. People are losing jobs and prices of goods are going up. Is there any good news from all of this? Of course there is, interest rates are low. The federal reserve tends to lower interest rates when the economy is stagnet. The intent is to encourage people to buy and get loans.

What does that mean to you if you already own a home in Cabot or Central Arkansas? Now is a great time to refinance your home. My wife and I bought our home just over a year ago and locked in a 30 year interst rate of 6.575%. At the time that was a good rate. We were able to refinance to a 20 year loan at 4.75%. We knocked off 10 years of our payment and raised our payment $12 a month. When you think about it, that is incredible.

In five years we will have way more equity then we did if we would have kept the loan at a 30 year note. If you are thinking of refinancing now could be the best time to do it. If you plan on staying in your home long enough after you refinance to justify it. That is something to discuss with your lender.

Good day