Ask the Expert: Are Cash-Out Refinances Still A Good Option For Homeowners?
With all that has been happening with rates and the mortgage market, many are wondering if it is still a good time for a mortgage refinance. For answers, we reached out to Harry Stewart, our Vice President of Mortgage Services. Harry has over 26 years of experience in the mortgage industry to share. He has helped thousands of people achieve their dream of homeownership working with all types
Q. Harry, mortgage rates were so low for so long, but now they are fluctuating. Are rates still good?
A. There have been a lot of ebbs and flows in the mortgage industry
lately, but rates are still historically low. They just aren’t as low as they have been the last few years, and those rates were incredibly low.
Q. Is it a good time to do a Mortgage Refinance?
A. It all depends on what you’re trying to accomplish. If your goal is a rate and term refinance, it may be a good option for anyone who hasn’t taken advantage of the recent low rates, those who may be in a high-rate loan, or if those who are in an ARM or a Balloon. If you are looking to do an estate buyout or a divorce buyout, you can refinance with that too. If you have private mortgage insurance, with the higher home values, you may now be able to refinance and get rid of that monthly payment.
Q. What about a Cash-Out Refinance?
A. If you have a specific need such as a home improvement project, debt consolidation, a large purchase, student loans, or a wedding; a Cash-Out Refinance is a good idea because some credit cards have very high interest rates. The blended rate that you would get from a Cash-Out Refinance would definitely be a lot lower.
Q. What about Home Values? Have they stabilized?
A. Yes, they have stabilized from where they were. Just a few months ago there were multiple offers on houses, some houses would sell $100,000 over market, but now with everything increasing like fuel
prices and groceries, the market has slowed back down to a normal pace. Now there are fewer buyers in the market, and home prices have stabilized.
Do you have more questions for Harry?
Harry and our mortgage experts will be happy to answer your questions and talk about the best ways to achieve your goals.
Call us at 815-744-7497 to talk with one of our mortgage lenders. Ready to start right away? Apply now below. We look forward to helping you do more with your money!
*Equal Housing Opportunity Lender. Individual savings will vary. Not all borrowers will qualify. NMLS #405831.