Calgary, AB (PRWEB) November 10, 2012
Mortgage rates have been steadily declining in the US and Canada for several years now and they have finally slowed down only by reaching historic lows. Although experts and pundits in the financial industry have been notoriously unsure of when or if the rates will begin to climb back up, it seems as if a gradual interest rate hike is imminent, if not within the next couple of months than sometime in the new year.
Although many people who are new to the mortgage industry are looking to take advantage of the unprecedentedly low rates, there is a completely different category of borrower that may also consider this moment as a wise one to pursue a loan. Anyone considering refinancing their home has likely been receiving similar advice for some time. Either a) keep waiting the rates will continue to lower, or b) now is the right time to go for a complete refinancing plan.
Had a homeowner taken the latter advice anytime leading up to these past few months they might have been disappointed, but it finally appears as if the mortgage rates have stabilized at an incredibly low rate, and that further lowering simply isn’t in the cards. The question that remains is how long mortgage rates are going to continue to be this low, and the question that a homeowner looking to refinance might want to ask, according to Ken Faminoff of The Lender Guy, is whether there might not be some advantages to pursuing that course of action now.
Some of the potential advantages of refinancing now while the going rates are so low are very straightforward. For instance, in many cases for those who have been previously locked into a fixed-rate mortgage, there is a strong chance that their monthly mortgage payment will be lowered. This benefit alone could be extremely worthwhile, especially for those who are interested in freeing up a bit more cash from month to month.
The other advantage, according to this Calgary mortgage broker, is the potential to reduce the amortization on the loan and pay the mortgage off sooner, while saving money on interest over the long-term. Of course, to negotiate these types of benefits may take some work, but the payoff could be substantial for anyone who has a long way still to go on their mortgage and isn’t easily seeing the way out.
At the very least now could be the right time to discuss a set of options or a strategy with a registered mortgage broker in Calgary. At least with the field of options explored, homeowners will be able to feel better knowing that they at least investigated whether or not these low rates were meaningful to their financial situation or not.