Feel like you missed the low mortgage rate window? Think again. Mortgage rates remain near historic lows, providing a unique opportunity for many to buy a home or refinance.
Did you know that in the early 1970s, mortgage rates hovered between the mid-7 percent range and high 8 percent range? By the 1980s, mortgage rates at one point rose to more than 18 percent! Depending on when you purchased a home in the 1990s, your mortgage rate may have been in the 7 percent, 8 percent, 9 percent or even 10 percent range. Today’s rates are starting to look a lot better, aren’t they?
Real estate data analyst Black Knight estimates that at current rates, there are millions of homeowners who may benefit by refinancing. Many people simply don’t realize that they are good candidates for refinancing. Perhaps a homeowner with a higher-rate 30-year mortgage could refinance to a 15-year mortgage that costs less each month and pays off the mortgage in much less time. If you aren’t sure, we can crunch some numbers and discuss the pros and cons of keeping your current loan or refinancing into a new one.
Others could stand to benefit by purchasing a home and locking in a low mortgage rate for years to come. Whether to buy a home, of course, depends on more than just financing costs, but they do play a large part in the decision. One of the benefits of homeownership is that with a fixed-rate home loan, your monthly principal and interest remains the same over the life of the loan. With renting, you’re subject to rent increases from your landlord.
At PRMI, we offer a variety of home financing options, both fixed-rate and adjustable. We work with all of the major home loan programs and are here to help you find the best lending option for you and your family. Put us to work for you!