With only just slight changes in mortgage rates, South Carolina homeowners know that they can still potentially save thousands of dollars over the life of the loan. For this reason, whenever there is a change in the trends of rates, so many people ask questions about refinancing. Rates have started to rise in recent months after being driven to record lows because of the pandemic, so use this guide to help you determine whether a refinance may benefit you.
Which rate is right for you?
First take the difference in interest rate between a potential refinance, and use that to determine how much less in interest you would pay over the course of the loan. Remember to factor in an estimate of closing costs and other fees because they may make it harder to break even on a refinance.
The average rate on a 30-year mortgage rose to 3.05% for the week of March 11, 2021, but remember that the actual rate you are offered will depend on a variety of factors. Lenders will consider your credit history, income, and the amount of equity already in your home when they make a determination about a refinance rate.
Switching to a fixed rate
One of the most common questions that homeowners face when considering refinancing, is whether they should switch from an adjustable-rate to a fixed-rate mortgage. The answer will depend on the specifics of your loan. The first thing you should consider is what stage it is currently at in terms of the adjustment cycle. Take some time to consider whether you are comfortable with the level of uncertainty that an adjustable-rate mortgage brings. Keep in mind that although rates are rising from historic lows, most experts are not predicting skyrocketing rates for the near future, which may impact your refinance decision.
When to act
If you are wondering if now is the right time to refinance, you aren’t alone. Approximately 3-million homeowners are expected to refinance their mortgages this month. Now could be a good time for you to act, but it’s important to perform a thorough audit of how much a refinance right now will save you. Rates may drop again in the near future, so make sure you carefully consider all your options before making a firm decision.The choice of whether or not to refinance your mortgage is a complicated one, and it largely depends on numerous factors such as the trend in rates, what type of rate you currently have, and how the timing works out. When it comes to Greenville mortgage rates and Greenville SC homes, take your questions to the experts who have the knowledge you need to make an informed choice. The Greenville real estate professionals at Parker Group are available to guide you through your homeownership journey. Contact Parker Group for more information about mortgage rates in Greenville, South Carolina.