Could Refinancing Be An Option Now?

As the market goes up and down over time, the option of refinancing shifts in and out of the picture as a viable option for many of us. If you were lucky to get locked in on a fixed product a few years ago at 4.75%-5.875%, you are still sitting tight at the moment. People in your situation really need to have a huge positive swing to make refinancing worth it. You are sitting so good that it is hard to improve. Even if you can improve slightly, you must look at the closing costs to get the new rate. Are they worth it? You have to run the math and compare that to your goals to answer the question.

If you are one of the many people who do not have rates this low, then refinancing is back in the picture. With the Bailout of Fannie and Freddie, Mortgage Backed Securities have made a nice rebound. Confidence is up in these bonds and this results in lower mortgage rates. At this moment, 5.75% on a 30 year fixed and 5.5% on a 15 year fixed are the going rates. Not too bad! Especially compared to the rates we have been dealing with lately.
Now keep in mind, the tighter lending standards have not changed. These are still in place and these rates and not attainable by everyone. You must qualify, but this doesn't change the fact that they are available!

Refinancing is a very important financial move and one that requires some thought. You need to evaluate how long you will be staying in the home. Are you taking cash out? If so, will the cash out you take make it even harder to sell the home in the future? Will the new loan give you PMI or take it away? How much monthly savings will you get? How much are closing costs? These are all important questions. Professional Mortgage Group will be happy to do a free analysis of your situation and offer a recommendation. If it makes sense then go for it. If it doesn't make sense, then don't refinance. It is that simple. We aren't in the business of offering bad loans that don't fit!

We will be watching the rates with a careful eye as always. The last time we saw a dip like this, it didn't last long. We must be ready to lock fast. However, I have a feeling this rally will sustain itself a bit longer. For the housing and mortgage markets, I truly hope so. Our economy really needs the boost!

If you are in the market for a refinance, please call or go online to apply. We can act fast and give you the analysis you need.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"