Well…..it depends. I know, not the best answer, but it really does depend. Every home owner is essentially like a snow
With all of this said…..the rates are at historical lows now and if you qualify, or even think that you may qualify, I 100% advise you….to apply for a refinance.
As a rule of thumb, I would suggest that if you can save 1/2 of a percent (.5%) from what you are currently paying….then it makes perfect financial sense.
With rates this low, you the consumer, truly have options. It may make sense to switch to a 20 year mortgage or a 15 year mortgage……this would increase your payments, but shorten the period of time…..however, with low rates it may be a minimal increase….one worth entertaining. Again….remember that we are all snow flakes and it all depends on your unique factors.
In many other instances….specifically for you young parents and condo owners….
It is clear that you may be outgrowing your condo soon…..in this case you can very easily take advantage of switching to a favorable 5/1 ARM. This would lock your rate for (5) five years…at a rate most iikely below 3%…yes BELOW 3%. You clearly know you are going to move before the five years….so this is a perfect option.
Look…this stuff is confusing, complicated, and at times painful, but in the end it is the matter of you saving money, building equity, growing personal wealth, and making wise financial decisions. You should work with someone you trust….someone who knows what is going on.
I could talk more on this….if you have any questions or want to be directed to some great lenders I work with regularly please do not hesitate to contact me.
As always…….be in touch! avi@lisslawboston.com or 617 505 6919
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JAN
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