Lately I’ve been asked about refinancing quite a bit. Homeowners are beginning to worry – they sense that interest rates won’t stay this low for much longer. Just consider what’s been in the media lately.
The Fed has indicated that it may start to raise rates in June though gradually. Credible financial sources are sending out articles and quotes stating that rates will begin climbing later this year. Professional mortgage bankers I’ve talked to all say that this time next year mortgages will be at 5-5.5% It’s no wonder why homeowners are worried.
So should you refinance? Maybe yes and maybe no. It all depends on how much longer you’ll be in your home and if it 
makes financial sense.
The only reason to refinance is to lower the cost of your mortgage and/or to get into a better mortgage product for your needs. If you purchased a while ago, the market has recovered to a point where you now have enough equity to refinance to a lower rate or to get rid of PMI.
The only way to determine whether or not it makes sense for you is to properly analyze things. You need a Realtor for a valuation of your home and a professional mortgage banker (not a mortgage broker please) to investigate your financial options.
This won’t cost anything and can be done in a few days with the help of local Realtor. As a matter of fact, I have done this often and work with Emi Kalici of Weichert Financial Services (201-569-7888). After I give people a market value of their home, they sit down with Emi to crunch the numbers.
If you have any interest in refinancing, my advice is don’t wait. It wasn’t very long ago that mortgage rates were just over 3%. Now they’re bouncing between close to or just over 4%. No doubt about it – they are oh so quietly moving up.
