Professor Tate Answers with Three Reasons You Should:
Refinancing your home loan can be quite a sticky subject. This is due to the possible repercussions of deciding without proper consideration of several factors. Since the real estate bubble burst in 2008, the government has come up with several versions of a program that will help homeowners with their mortgages.
In recent times more and more people are considering refinancing their homes. Some experts say now is a good time to consider this as a viable option. There might be some truth in this given that your home actually might have a higher value now. Of course, considering where you live and how much you bought your house for, the value of your property may have improved. Whereas you may not have had equity before, you might find yourself in a more favorable position given that the recent times have been fairing better.
All else being good, here are three reasons why refinancing your home now is a smart choice:
Last January 2015, the Federal Housing Administration (FHA) announced that they will lower their annual insurance steps to protect consumers by reducing risks in the mortgage market. This move reduced the mortgage insurance premium rate from 1.35 to 0.85 percent for FHA-backed loans. This was seen to result in more savings for new homebuyers and people who will choose to refinance their homes. Future borrowers who qualify for FHA’s program will enjoy benefits of more affordable FHA loans at a more affordable cost.
You asked, now you know!
-Professor Reel S. Tate