The vitality of the housing market weighs heavily on the condition of the economy. A federal income tax credit gave the housing market a boost earlier this year. Sales have declined since the program ended in June, even though interest rates have been at historic lows. If a new home is not in your immediate future, have you thought about refinancing your home? Refinancing can save you a lot of money, but you need to know the facts before moving forward so you can make the best decision.
Home refinancing is a great option for people looking to lower their monthly payments, get money for home improvements, consolidate debt from high-interest credit cards, switch from an ARM to a fixed-rate mortgage, or even avoid foreclosure.
Low rates may be ending soon
On April 9, 2009, President Barack Obama said, "There are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates. That is money in their pocket. And we estimate that the average family can get anywhere from $1,600 to $2,000 a year in savings by taking advantage of these various mortgage programs that have been put in place."
Interest rates are still at historic lows, but the end may be in the near future. That's why now is the best time to investigate refinancing while you can still save an incredible amount of money.
Here are 3 things you need to consider before refinancing:
1. Understand lender fees and points.
Be sure to discuss and ask questions regarding the lender fees and points on your new loan. Making sure you understand the parameters of the loan ensures that there are no surprises, such as last-minute closing costs or higher than expected interest rates.
2. Research prepayment penalties
Depending on the contract details, some mortgages have penalties for prepayment. Call your current mortgage lender and ask them about prepayment penalties. Even if you have a penalty, it might still make sense to refinance based on the amount of money you'll save.
3. Obtain a variety of refinancing quotes
Shopping around for quotes from a variety of companies is a smart idea because each one will offer you something different. Comparing quotes and contract details helps you pick the best refinancing offer for your situation.
An easy and free way to compare quotes is through DeltaPrimeRefinance.com. The Web site - featured in USA Today, Forbes and on ABCNews.com - allows you to get up to 4 quotes without having to submit any sensitive personal information. Within minutes, you can fill out a form and have the quotes come to you so you can compare and get the best bids.
DeltaPrimeRefinance.com is unique because there is:
- No credit check
- No Social Security number
- 100 percent free quotes
- 100 percent licensed lenders
You can join millions of Americans who have benefited from a home refinance today. Visit DeltaPrimeRefinance.com today to learn about your options.
And don't forget, there is ample home inventory on the market and we are heading into a slower time of year when prices may soften even more. Lower interest rates mean more buying power, so if you would like to take advantage of the low interest rates and have a brand new home, call your favorite Realtor today!
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