December 27, 2017
Is it the right time to refinance my home loan? The answer to that question depends on a variety of factors, but there are some things to remember no matter when you decide to refinance a home mortgage loan.
A September 2017 report by Fortune.com includes data that indicates a general increase in home prices, including the observation of the “65th straight month that prices have risen year-over-year”.
That same report mentions that “housing inventory declined for a 26th straight month on a year-over-year basis”.
In housing markets where property values are going up, certain kinds of refinance loan options become more attractive.
An FHA cash-out refinance loan makes more sense for borrowers who have more equity in the home; cash out refi loans require a new appraisal and if your home is worth significantly more than from when it was last appraised, that could be an incentive to explore cash out refinance loan options.
Is Now The Right Time To Refinance Your Home Loan?
Depending on your financial goals and needs, it may be a good time to examine your options. Are you interested in refinancing out of an Adjustable Rate Mortgage (ARM) into an FHA fixed rate loan?
You can refinance out of a non-FHA mortgage into an FHA loan (adjustable rates or not), or refinance an existing FHA ARM loan into a fixed rate mortgage.
It’s never a bad time to get into a fixed rate mortgage if you want out of an ARM loan, and for those with FHA ARM loans who want to get into a fixed rate, the FHA Streamline Refinance loan option offers a no credit check/no appraisal option.
There is no FHA-required credit check or appraisal for an FHA Streamline Refinance loan, but your lender may require one or both depending on lender standards. The FHA Streamline loan requires some benefit to the borrower in the form of lower mortgage payments, a lower interest rate, or the switch to a fixed-rate mortgage.
Talk To A Loan Officer
Refinance loan options that are right for some borrowers are wrong for others; it all depends on your long-term financial goals. Do you plan on staying in the home for the entire term of the loan? Or do you have plans to sell in the near-term instead? These issues can affect you decisions about refinancing.
Talk to a loan officer about your financial goals and needs to see which options are right for you.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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