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November 29, 2017

Home Refinancing: Good or Great?

House in the snow

How to sell your home during the winter

Refinancing your home in the winter allows access to the best rates and dozens of other great reasons. We’ve assembled some of these, helping you make the decision whether you should refinance your home loan before the end of the year.

With the new year comes new beginnings, so take advantage of these end of the year opportunities! If you’re on the fence, here are the top four reasons you should hop on the side of refinancing.

1. Low and Lower Rates

Rates have been historically lower in 2017 than in previous years. Current rates are about 4.25%, and while they might not incentivize most homeowners with similar rates to refinance, you should reconsider! Compared to mortgage rates in early 2015 and 2016, today’s rates are incredibly lower. Mortgage analysts don’t expect them to last much longer for a number of reasons. You may not even realize that the 6% or higher rate that you signed onto years ago could be significantly lower just by applying for refinancing. Millions of homeowners have made the switch, with mortgage statements and thousands of dollars saved to prove it.

It’s always possible the current trends could last a few more weeks or even months into 2018, but there’s always a risk when waiting for rates to climb even lower. Eventually, rates will bounce back. If you could save substantially now, you should lock in the current rates. The sooner you refinance, the sooner you’ll start saving on your monthly payment and the more you’ll save over the life of your loan.

2. New Year, New Monthly Budget

The new year is a great time to make life changes. Whatever your resolutions may be, more cash always helps. Refinancing to secure a lower rate will mean your monthly mortgage payments go down, which means you’ll free up potential hundreds each month to go toward things for you or your family. That means hundreds more in your pocket—either for savings, a hobby, or a dream vacation. Refinancing can take up to 45 days to complete, which means if you apply today, you should receive your new mortgage and new monthly payment as early as 2018 begins. There are few better ways to ring in the new year than with a bigger monthly budget, and a little extra spending power.

3. An Advance on Gifts

There are two good reasons to take advantage of refinancing during the holiday season.

If you’ve been dragging your feet due to the closing costs, ’tis the season not to worry! Many homebuyers receive gifts from parents and other relatives as down payments and closing fees. Families and homeowning go hand-in-hand, with lots of family members willing to help with refinancing costs. In lieu of presents, ask friends and family for financial gifts to go toward fees.

If you can manage on your own but still feel financial stress with the approaching holidays, refinancing on your home can help you get cash in your hand, fast. We have information on cash-out refinance, which can provide you the funds you need for gifts and travel. By trading in equity you’ve built up on your home, you can have a little more cash-in-hand for a little more peace of mind. Whether you want to spend that on presents or other things is between you and the spirit of the holidays!

4. Potential Tax Deductions

Unfortunately, if you’re refinancing your first or second home, you can’t write off the closing costs and fees. Mortgage points from the interest of a loan remain the only tax-deductible costs of a mortgage. If you own rental property, though, you’re in luck! Everything you spend on refinancing can be written off on your taxes. But only if you close on the new mortgage before the end of the year.

Whatever your goals are for refinancing, we’re sure they’ll be best met before the end of the year, and we want to help you achieve them. If you’ve been on the fence about refinancing, now is the time, so you can start off 2015 right. We’d love to talk to you more about the refinancing process and the current low mortgage rates, so contact us today!