DELMARVA. – The Federal Reserve has announced a new cut, to target interest rates. Due to this, there has been a refinancing boom, with many homeowners rushing to lower their mortgage rates.
People often refinance for many reasons. If you’re struggling to make mortgage payments, one way to lower them is to refinance. A second reason is to use the equity you’ve built up on your mortgage to pay off higher-interest debts.
People tend to refinance, in hopes of simplifying debts or consolidating multiple loans.
There are cons though, you could potentially owe more on your loan balance, or end up racking up more debts, making yourself worse off than before.
The long-term benefits may outweigh the negatives. Always check with a financial professional to understand what impacts refinancing will have.
A Realtor, from The Maryland and Delaware Group of Long and Foster, Marco Smith advises those who want to refinance, to take that step now before it’s too late.
“I would do it right now, if I was in dire need to get lower monthly payments and I was struggling, or let’s say the roof is leaking, and I really couldn’t come out of pocket to do it. Maybe, I needed that excess cash that I don’t have, right now would be a great time to borrow as rates are starting to drop.”
While the Federal Reserve, has indicated more target interest rate drops are coming, there’s no guarantee rates will continue to drop.
If you are interested in learning more, you can contact Marco directly here.