You’ve probably heard alot of discussion on refinancing and that includes refinancing myths. It’s time to dispell some of the refinancing myths you may have heard. “Refinancing” is a scary word for many people, but that shouldn’t be the case for you. The myths about refinancing cause much of the worry. Here are a few refinancing myths we’d like to dispell about refinancing that may be holding you back.
For many homeowners, refinancing can not only lower your monthly payments and help with your monthly budget, but it can save you thousands of dollars in the long run.
Three refinancing myths dispelled…
1. Refinancing Myth: You’re too late. The best deals are over.
The Reality: YOU’RE NOT TOO LATE.
For years now, we’ve been hearing that interest rates will be on the rise, and although there have been some small increases, you’re still in a great position to drastically lower your interest rate. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.
2. Refinancing Myth: It takes alot of time (and effort) to refinance.
The Reality: IT’S NOT TOO TIME CONSUMING.
Don’t brush off refinancing just because it seems like a long and daunting process. An informational call with a lender to see how rates compare will only take a few minutes. There are also some programs for streamlining the application process. Often much of the process can be handled online and in the comfort of your own home or office. And besides, isn’t the amount of money you could save worth the time and effort?
3. Refinancing Myth: You can’t refinance an Adjustable Rate Mortgage
The Reality: ARMS CAN BE REFINANCED, (and it can be smart to do so!)
Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.
If you’re in a home you’d like to stay in, refinancing can be a great option for you. Many of the worrisome refinancing myths you’ve heard may not be true or may not apply to you.
If you’re thinking you may want to purchase a new home instead, maybe now is the time to sell and look for that new home.
Either way, you can access my list of reputable area lenders who’d be happy to help you. Just contact me for information or to help you through the process of buying your new home.