Homeowners everywhere are enjoying a resurgence of their property values as the nation recovers from the economic downturn that started in 2007-2008. That means equity levels for those who stuck out the lean years are finally rising again.
However, many people are still burdened with mortgage interest rates that are higher than those financing homes today are being offered. Is it time to refinance? Rates are still at historic lows, and indicators are that rates will begin rising soon. That means homeowners still saddled with higher rates should consider refinancing now to take advantage currently low rates. Over the term of a home loan, even a single percentage point makes a significant difference in the total amount that must be repaid.
What Issues Do Homeowners Face When Refinancing In Today’s Market?
After the market crashed in 2008, banks tightened up their qualifications for lending, leaving many would-be homeowners unable to qualify for a mortgage. Because home values plunged, anyone seeking to refinance faced the same type of issue – they simply didn’t have sufficient equity to allow them to meet the new requirements.
While the requirements really haven’t changed, the simple fact that home values have recovered from their low point means homeowners may be able to refinance and take advantage of the current low rates. It also means those looking to acquire enough money to make home improvements are now in a better position to do so. What homeowners need to determine is if refinancing is truly the best option to consider or if there are other potential solutions available.