There is no doubt that our economy is having a bit of a problem. While the experts are predicting we are at the end of the worst of it, that really doesn’t help the millions of people who are still trying to recover from the recession themselves. While no one likes to be in the position of struggling, the good news is that if you are a homeowner you have something you can use to leverage yourself into a better position. Refinancing may not be the buzzword it was in the late nineties, but not only is it a legitimate way to help ease the strain of finances, it is something that should be done sooner rather than later and here’s why.
1: Rates are going to start climbing again
While lending rates have been low for quite a while, the truth is that they are probably going to start going up quite significantly. Even if you are only going down by a quarter of percent on your homes interest rate, you will save a lot of money in both the long and short term. Not only should you consider the fact that you can save money, but as rates start to climb, the cost of borrowing money climbs with them. If you have been considering a home improvement project, or you have another large expense on the horizon, you would benefit by acting now instead of waiting.
2: Mortgage companies are desperate
Desperation may seem like a strong term to use, but it’s the truth. Not only did the jobs go away, but the housing market took a massive hit from the recession as well. This has left a lot of mortgage brokers and banks needing to make up short falls. On top of losing money, there has been a big slow down in new business. For this reasons many mortgage lenders are slashing their closing costs and other fees in an attempt to get you to refinance. This won’t last any longer than it has too, so again moving on refinancing now is a strong benefit.
3: Building costs have gone down.
One of the few advantages of the recession is that it has forced people to become more competitive in what they charge. This is doubly true in the construction field. Right now everyone from general contractors to manual labor are willing to complete a job for a lot less then they were a few months ago. By acting before the housing market starts to much of a rebound, you can really save yourself the cost on adding a room or other home projects.
4: Everything in on sale
Because of the massive unemployment we are seeing, there is less spending. This means that companies that sell things are struggling. When a company starts to struggle it puts stuff on sale. Ranging from new cars to appliances, there are several big ticket items on sale. They won’t be on sale forever though and it wouldn’t be the worst idea to refinance and take advantage of these prices.
5: Now is the time to invest
It only takes glancing at the business section of any newspaper to figure out that most stocks are starting to stabilize and climb again. This rise is in stock values is probably going to continue steadily for some time. By acting now and cashing out on some of your equity, you still have a chance to get on some great stock prices.
6: Consolidate your debt
If you are like many people, this recession may have forced you into serious debt. If at all possible consolidate your debt with the refinancing of your home. Rates are really low right now and by consolidating your debt now, you could save thousands of dollars.
7: Start or buy your own business
Most business costs have gone down a bit over the last couple years. Also, many people who own businesses are looking to sell for bargain rates. This creates a great opportunity for those who have always wanted to start a business, and with the fact our economy is turning around, it isn’t as risky as it could have been just a few months ago.
8: Save some money
One of the best parts about low interest rates is that it creates a wonderful opportunity to save money. By refinancing now you can probably knock a couple hundred dollars off your mortgage payment. This savings can go to a lot of things such as paying down debt, saving, or even just having extra money at the end of each month.
9: Purchase a retirement home
It is painfully obvious home values are not what they used to be. This can actually be a benefit to you if you have been considering buying a retirement or vacation home in the near future. The combination of low rates and low housing prices has created a very unique opportunity for adding to a real estate profile.
10: Giving a loan to a family member
Almost everyone knows someone unemployed at the moment. These people need help and if you were to refinance now, you could help them and offer them a very generous repayment percentage. True, lending money can be a bit risky, but when it comes to family, sometimes it’s worth the risk.
In the end, there are many more reasons to take advantage of refinancing right now then not doing it. If it’s something you have been thinking about, then get the ball rolling. If you haven’t really given it consideration, now is a great time to think about it.