Astute homeowners reacted quickly when interest rate percentages fell last month following Britain’s vote to leave the European Union.
According to America’s Wealth Coach, Deborah Owens, mortgage rates are lower this year than they were in 2015. That leads us to the question: Is now the right time to refinance your home?
Before you head down to the bank or call your mortgage lender, Owens talked with NewsOne Now host Roland Martin about her list of savvy refinancing strategies.
The financial guru’s list included:
- Only refinance when you know you can lower the interest rate.
- Refinance if you can reduce the length of the loan.
- Take advantage of the “streamline option.” This option allows current mortgagors to lessen paperwork and avoid some of the closing costs.
Owens added that in many instances, the streamline option does not require an appraisal and other forms of documentation where much of the fees associated with refinancing are accrued.
If you have an opportunity to use the streamline option, homeowners have the ability to “reduce the cost” of refinancing your home.
America’s Wealth Coach also suggested homeowners should crunch the numbers and determine how long they will be in the home, as well as how long will it would take to pay off closing costs.
Watch Roland Martin and Deborah Owens talk home refinancing in the video clip above.
For more info, visit DeborahOwens.com/NewsOneNow.
PHOTO CREDIT: Getty