2016 has, so far, been unfriendly to stocks and is likely not finished heading into a bear market. With falling oil prices, China’s economic turmoil, and other global pressures, investors are flocking to the safety of mortgage bonds. This translates directly to lower mortgage rates. Bad news to good news!
With many scenarios dipping below the 4.0%* mark again, here are some good reasons to consider a refinance:
- Save money with a lower rate. If your rate is 4.25% or above, it’s a good time to look at what you might save over the short and long term.
- Leverage your equity for investment. Portland home appreciation is up which means you likely have added equity in your property. Many people are leveraging this to upgrade to a larger home or buy a rental property.
- Consolidate high interest debt. This isn’t my favorite reason to refinance, as you may be trading a short-term debt for a long-term payment, but I can help you do the math to determine if it makes sense.
- Get rid of your mortgage insurance. Mortgage insurance benefits you not! It’s simply the lender’s protection against foreclosure. If you have at least 20% equity in your property, you can remove the MI and save.
- Renovate your home. Build up, build down, remodel or build that Accessory Dwelling Unit (ADU) to rent out and create cash flow, simultaneously increasing the value of your property.