It’s Still A Good Time To Refinance For Additions, Credit Cards Or Divorces

Don’t get disappointed with the fact that mortgage interest rates have gone up a little. They were at the exact same level in 2019 so it’s not as horrible as the media is making it out to be. If you have credit card, unsecured debt or want to do an addition because you can’t find what you like on the market, it’s still a good time to look at a refinance. Those who are going through a divorce may find that their current rate isn’t much better than what they will get for a new mortgage. And, if rates do dip in the future, we have NO CLOSING COST options that can usually help you lower your rate by updating the file.

Credit card and unsecured debt has increased significantly and rates can be as much as 18%. The Federal Reserve Bank of New York’s Center for Microeconomic Data on May 10th 2022 issued its Quarterly report on Consumer debt. The Report shows a solid increase in total household debt in the first quarter of 2022, increasing by $266 billion (1.7%) to $15.84 trillion. Balances now stand $1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic. The report is based on data from the New York Fed’s nationally representative Consumer Credit Panel.

Home equity loans and lines will carry the risk of being adjustable or, if fixed, carry a higher rate and shorter term. Thirty-year fixed rate mortgages are still the leading choice of mortgages by far. All of our mortgages can be pre-paid without a penalty, unlike what you will find on home equity lines of credit. Additionally, lines often require you to open up a bank account and/or maintain a certain balance, not so with first mortgages.