First, a quick update. Homespace has gone virtual! I am now offering virtual tours to all present and future clients. Click here to read more and learn about some additional options available for those who plan to buy or rent real estate during the pandemic.
Now, let’s talk about refinancing! Currently, interest rates for both new purchases and refinancing are near all-time lows. I recommend that homeowners with an interest rate above 4% consider talking to a lender about refinancing.
What is refinancing?
Loan refinancing is the process of obtaining a new loan to pay off an already existing loan. Homeowners typically refinance in order to receive a lower interest rate so that they can reduce their monthly mortgage payment.
Are there any downsides?
There are fees associated with refinancing and depending on the length of the new loan you term you select, you could end up paying on your house for longer than initially planned. Ask for a side by side comparison of your current monthly payment and amortization schedule vs the quoted refinanced option.
What’s the first step?
Reach out to myself or a loan officer to discuss your options, get a rate quote, and see if refinancing makes sense for you. I’m happy to provide references for some excellent lenders who have some of the lowest rates right now.
What should I know about refinancing during COVID-19?
Many lenders are double and triple-checking employment status’s which can make the refinance and/or purchase process take a bit longer than usual. Jumbo loans (loans larger than $424,100) are also temporarily suspended in many areas. Otherwise, it’s business as usual on the lending side.
If you’re considering refinancing and have any additional questions, please call, text, or email me for more info. If you’ve been thinking of purchasing in the near future, let’s talk too! Rates are great right now and the Austin market is showing no signs of slowing, even amidst the pandemic.
I’d love to be your resource on all things real estate, so reach out any time!
April 20, 2020