All Aboard the Home Refinance Train!

Is It Time to Refinance Your Home?

They say autumn ushers in changes. In our financial markets, October has always been a volatile month, and October 2014 definitely meets the criteria! We’ve seen the Dow swing from lows to highs. We’ve had obscure messages from the Fed. Likewise, interest rates are the lowest we’ve seen since early 2013. Is it a good time for a home refinance?

What’s happening out there?

A mix of forces is converging. A perfect storm? We don’t know, but it appears that way. Earlier in the month, the International Monetary Fund (IMF) predicted lower economic output for every region in the world, except the US. The outbreak (and the hysteria surrounding the outbreak) of the Ebola virus has spooked worldwide equity markets. Both China and Japan have released lower growth expectations at the same time that Europe is releasing lower numbers as their leaders disagree on the direction they need to head.

Stateside, the Fed has given no real timeline for interest rate action as economic results have been mixed. For example, employment is better yet the housing market lags. In the Middle East, ISIS continues to be a disruptive force, and that concerns markets.

Uncertainty drives demand for safer investments.

When everyone and everything is uncertain, money seeks shelter. The safest harbor of all is the United States, particularly, US Treasury instruments. When there is a demand for our debt obligations, that forces interest rates lower– including mortgage rates. So, the refinancing train may have left the station, but it stalled just beyond the platform. Now is the time to refinance, renovate your home, add a pool or addition, take equity out of your home, turn your ARM loan into a fixed loan, or move from a 30 year loan to a 20 year or 15 year loan.

For those of you with mortgage insurance or a second lien, many areas have appreciated, so you can refinance to rid yourself of that monthly fee while getting a great rate. Eventually, rates will start increasing again. Contact me to discuss your options!

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

© Joel Richardson. All Rights Reserved. | This website is operated by Joel Richardson, who is currently an employee of VeraBank, N.A. (“VeraBank”) The views expressed on this website are not necessarily those of VeraBank. This website also has its own privacy policy, which may differ from VeraBank’s privacy policy. VeraBank makes no express or implied warranty regarding the information or data on this website, and hereby expressly disclaims all legal liability and responsibility to persons or entities who use or access this site and its content, based on their reliance on any information or data that is available through this website. Joel Richardson has sole responsibility for the information and data on this website. Deposit and loan products described on this website are offered through VeraBank, Member FDIC. To visit VeraBank’s website, here.