Tips To Determine Whether to Refinance Your Home Mortgage
PLYMOUTH MEETING, PA - With interest rates hitting record lows, homeowners across the country continue to refinance their mortgages. According to the Mortgage Bankers Association, applications for mortgage refinancing increased 8% between the second and third weeks of January alone. The Federal Government lowered interest rates in response to the recession, but some economists expect those rates to change quickly if the economy improves -meaning the window on low rates may not remain for too much longer.
Qualified homeowners-even those who've recently refinanced-can still benefit from refinancing their mortgage in the next few months.
"Before beginning the re-fi process, it's important to ask what you want to achieve with a re-fi and how it will impact your long-term financial planning goals," said Bob Johnson, Head of Capital Markets with New Penn Financial, a national mortgage lender with more than 30 locations and 1,000 employees across the nation.
Johnson offered several questions homeowners should consider to determine whether refinancing is a good option for them:
- Are you interested in leveraging your equity to repair or enhance your home? Good move-home improvement can increase the value of your house and hence your investment.
- Will you be retiring in the next 10 to 15 years? Refinancing now-while you are still working-can help lower your monthly note, allowing you to put more of your paycheck into your retirement account.
- Do you want to pay off your mortgage faster? Don't double up on your monthly payments. Refinancing to reduce your 30 year mortgage to a 15 year note with lower rates is a smarter financial move than making extra payments on your higher rate loan.
- Is your mortgage under water? If you've consistently paid your mortgage but the value of your home has fallen, the Federal Government's HARP loan (Home Affordable Refinance Program) can help you restructure your mortgage.
If you're not sure if refinancing is right for you, talk with a trusted mortgage specialist at New Penn Financial. They can help you analyze your mortgage, assess your financial goals and match your refinancing needs to a range of mortgage products that can best fit your needs.
About New Penn Financial
New Penn Financial has become a leading nationwide lender by bringing expertise, extremely competitive rates on a broad portfolio of mortgage products, and exceptional customer service under one roof. Founded in 2008, and licensed in 47 states, the company and its reputation have grown rapidly under the guidance of a management team with years of experience in the mortgage industry. Headquartered in Plymouth Meeting, Pennsylvania with 36 branch offices nationwide, New Penn was recognized by INC. Magazine in 2012 as one of the 500 fastest-growing private companies in the U.S. New Penn is a Shellpoint Partners company. Shellpoint is a well-capitalized specialty finance company led by a veteran management team.