5 Things to Remember When Mortgage Rates are on the Rise

Mortgage rates seem to be rising for the last month of 2019. The increase is nothing too dramatic, though, and a lot of experts are still saying that the rates will stay unchanged for the remaining days of the year.

However, it would be best to be prepared in case the rates dramatically increase. This is especially important if you are applying for a mortgage sometime soon, so make sure to keep these things in mind while watching the mortgage rates in Ogden.

Act Fast

If you are planning on refinancing, then do it now than later. As mentioned, the mortgage rates are not expected to dramatically change soon, but you would want to make the most of that before it shoots up that you can’t do something about it anymore.

Do your research and talk to a financial advisor as soon as possible. You are making a huge leap that involves money, and you would want to see to it that you wouldn’t lose too much of it when refinancing.

Make the Most of the Rising Home Prices

Home values are rising, which means that now is a good opportunity to make the most of your house’s equity through a cash-out refinance. However, if you are planning on spending it on properties that don’t rebuild equity, such as a car, then you have to be sure that you are willing to take the risk. You should also try accessing your house’s increasing value by applying for a home equity line of credit or a home equity loan.

Shorter Term Refinancing

Trying to refinance into a shorter-term, fixed-rate loan that can help you save money in not just one, but in two ways. The said interest rate will be a whole lot lower than that of a 30-year fixed-rate loan, which means that you will be able to save a lot more money by paying lesser interest.

Consider Refinancing into an Adjustable-Rate Mortgage

new homeowners

If you want lower initial rates, then try refinancing into an adjustable-rate mortgage. Doing so will make a lot more sense if you are planning on staying in your house for no longer than your loan’s fixed term.

There’s just one drawback that you have to be aware, though. That is the possibility that your rate might increase if you try to get the lowest rate possible. If you are okay with that, then go ahead and refinance into an ARM.

Work on Your Credit Score

Simply because the rates are low does not mean that you would qualify for refinancing. You would want to make sure that you will work on your credit score before acting on a refinance. Your credit score is a huge factor to consider when getting a low mortgage rate, so make sure to increase your score first before acting on anything.

Doing your research and talking to a financial advisor before taking a refinance out will help you save money and time. Always consider the risks and advantages before acting on anything so you wouldn’t regret it.

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