Look out for these 3 things!

Now that the rates have dropped, you may or may not be getting bombarded with offers to refinance your mortgage.

Before we get into the advantages, please be aware, there are many people out there who are looking to take advantage of others during these times.   Here are some red flag alerts to watch out for:

  1. Some may offer seemingly low rates, much lower than what else is out there.

    More than likely there are fees attached, and the fees could be so hefty, that they negate the advantages of doing a refinance.

  2. Many will try to sell you a loan that does not have a fixed rate.

    While loans that have variable rates can make sense to some, it is not always the most secure option for someone who plans on living in their home for an extended period of time.

  3. Some will do impressive math to make a refinance look attractive to you

    While cash out refinances can make the cash flow seem attractive, the person selling the loan may only be telling part of the story.  It is in your best interest to understand what you will end up paying in the long run.

Now that you know a few of the pitfalls, let’s talk about places where these drop in rates may assist:

  1. Now that the rates have dropped: it may make sense to do a cash out refinance to put money back into your home in the form of home improvements or updates.

  2. If you purely have a higher interest rate and can better your position with a rate and term refinance, you may save a significant amount of money over time.  A cost benefit analysis may be used to make that determination.

  3. If you do have some consumer credit debt that you would like to consolidate with the equity in your home, a refinance may also benefit you.  It is always best to review with a Mortgage loan originator and understand the long term effects of your debt.

It may be time to take advantage of the current drop in interest rates.  I do not believe that our current rate drop will be long lasting, however we certainly have a window now to look into your options.

If you have the slightest curiosity to see if you may benefit from a rate and term refinance or a cash out refinance, call the trusted team at Morgan Financial today.  We will give you the facts, review your goals, and assist you in making the right decision.  Call or email us today as we are eager to assist.