As the year draws to a close, it’s a good time to assess accomplishments and set new goals. Reviewing your mortgage is an important but often neglected aspect of year-end goal setting. Six months ago, many financial professionals predicted that mortgage rates would be much higher than they are today. Due to recent changes in market conditions, current mortgage rates and terms could significantly impact your year-end financial planning.
As several lenders recently reminded us, mortgage rates are near record lows and have dipped in recent weeks. While mortgage rates are far from their historic highs in the 1980’s, even a slight reduction could have a significant impact on monthly expenses. Depending on when you purchased your home, rates may be lower and terms may have changed. Even home owners who closed in the past 18 months may see a cost savings. Mortgage rates are only part of the equation. In some cases, your home may have appreciated since closing. As the New York Times noted, since 2012 home equity has increased by $3 trillion. Appreciation in value may have a favorable impact when you refinance and may eliminate monthly private mortgage insurance (PMI) payments.
An annual review of your mortgage may identify ways to benefit from recent market changes. A seasoned mortgage broker can provide you with the most current market conditions and suggest an effective course of action. We work with some of the most experienced mortgage brokers in the industry. Please contact us today so that we can introduce you to a seasoned mortgage professional and perhaps start saving money on your monthly mortgage bill in the new year!
Please contact us if you have any questions about the current real estate market. We would be delighted to hear from you!
Photo Credit: Sean McNenarny