The current super low mortgage rates have many people wondering whether or not now is the time to refinance. For 23 weeks rates have been under 5%, last week headlines touted that the average rate for a 30 year fixed rate mortgage was 4.19%, the lowest recorded since mortgage rates began being recorded. With such history how could now not be the time to refinance? Oddly enough, now might not be the right time for you.
Here are some things to keep in mind to determine whether refinancing is right for you:
- Do you have equity in your Phoenix AZ home? If you are underwater on your mortgage you will have a hard time refinancing.
- Costs of refinancing. How much is it going to cost to refinance and how many months will it take to recoup the cost? Will you be in your home that long?
- Taxes. Mortgage insurance is a write-off come tax time. Is lowering the interest in your best interest?
These are just a few points to think about when considering refinancing your Phoenix AZ real estate. If you have plenty of equity, good credit and overall financial stability this could be the best time. There are a lot of things to think about when refinancing, for example, if you have less than 20% equity you will have to have prime mortgage insurance (PMI) which will add to your monthly costs. Take time to evaluate your financial and Phoenix real estate picture. The historically low rates are eye-catching and are great for buying a home but they may not be ideal for refinancing your home.