13 Reasons to Refinance Now or Forever Hold your Rate™
By now you’ve heard that the US Treasury is selling bonds at 3% in order to offer mortgages at 4.5% which should yield a profit of 1.5%. Yes, most of America is surprised that the powers that be are finally starting to consider ideas that actually make the government money versus the new bailout alternative. With interest rates, on certain loans, at nearly 4 year lows right now, should you refinance now or wait for the promised decline? 
Most experts would tell you to “make hay while the sun is shining”. There is too much uncertainty in the financial markets to leave this savings to chance. With rates at about 5% right now, taking a chance for a 4.5% rate could be costly.
If you are the ultimate price/rate shopper this is the gamble you are taking. There are some significant advantages to refinancing before the end of 2008 that might also influence your decision.
Here are 13 Reasons to Refinance Now.
- No Payments Until March 2009: This isn’t some furniture/electronic store gimmick. If you refinance now versus waiting until the rates may drop then you can likely skip two mortgage payments. That would mean no mortgage payment in January or February depending who your loan program.
- $311 Dollars Per Month: That is the average payment decrease you can expect from refinancing with Zeus. Would it help your saving/retirement goals if your monthly payment decreased by $311 per month?
- Little or Nothing Out-of-Pocket: In nearly every case, the cost of your refinance is rolled into your loan so there is virtually nothing paid by you out of pocket.
- Cash Out: Many homeowners have been on the fence regarding when and how to take out the equity in their homes in the form of cash. Refinancing your home to pull out the equity in the form of cash is something that a lot of homeowners do when interest rates hit these lows.
- Tax Time:
- The fees associated with your new loan are tax deductible on your 2009 tax return if you complete your refinance by December 31. They are tax deductible even if you roll them into your new loan.
- Your property taxes are deductible in the year they are paid. So, refinancing in December would give you the cash to pay your property taxes in December and allow you to deduct them in 2009. If you wait until January or February to pay your real estate taxes then you’ll have to wait until 2010 to deduct them.
- If you’ve considered using credit cards to pay your property taxes or finance your Christmas gifts then you might reconsider once you learn that mortgage interest is tax deductible, but credit card interest is not. Many homeowners do a cash-out refinance in December in order to pay for their Christmas gifts simply because they can deduct the interest on their new mortgage which helps boost their income tax refund.
- Dead Equity: If you have dead equity sitting your home or investment properties then there has never been a better time to gain access to that dead equity and put it to work for you at a very low cost.
- Remove PMI: Home owners find that lower interest rates coupled with the ability to remove PMI is all the reason they need to move full speed ahead on refinancing as soon as possible.
- Declining Home Values: If property values continue to decline then you could be leaving money on the table if you intended to take out your home equity in the form of cash. If you recently purchased your home and they are still building new homes around you then your home's value could decline drastically which could prevent you from refinancing later.
- Open ARMs: If you have an Adjustable Rate Mortgage (ARM) and you haven’t refinanced yet then this is your opportunity to move forward. Many ARMs adjust to their highest rates in January so your payment may jump up several hundred dollars when you receive your next statement. The only way to prevent this is to pay off your mortgage in full, or simply refinance.
- Jumbo and Investor Loans: Wall Street has taken some pretty big hits when it comes to jumbo and investor loans. Fannie Mae and Freddie Mac have really tightened their guidelines for investor loans which has resulted in a significant decrease in their popularity on Wall Street. This means the interest rates on jumbo and investor loans will not likely decline much more than their current lows. This sentiment is likely to continue through 2009, and this is why many savvy investors and jumbo loan home owners have been refinancing in record numbers during December according to the NMBA.
- Year End Terrorism: In the post 9/11 era mortgage rates typically rise toward the end of the year and in January. Why? Because the rise in religious holidays typically coincides with the rise in terrorist attacks around the world. The unknowns associated with these attacks cause rates to rise. This is another great reason to refinance now versus waiting until the New Year.
- Time is Running Out: As you may have heard in the national news, the qualifications for refinancing are getting tougher by the day. What is possible today may not be possible in just a few months or weeks or days. If you have a difficult situation then you should certainly act now versus waiting. Any delay on your part could be very costly if the market continues to tighten and guidelines continue to get tougher for home owners with your particular situation.
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Property Taxes are Due: Based on the median home price in
Houston , Texas , the annual tax bill averages around $6,000 per home. If you don’t have a current escrow account or your current account is too low, then refinancing before the end of the year could save you big. You can roll that $6,000 into your new loan versus taking it out of savings or using credit cards.
With all these potential risks to consider, why would anyone wait? You can see our December 4, 2008 ABC News interview regarding this question by clicking here:
Most people are jumping at the opportunity for these low rates because no one really knows what will happen in 2009 with loan guidelines, fees, home values, and interest rates.
To Refinance Now complete our easy online application by clicking here:
or call 713-ASK-ZEUS (275-9387) for our Quick, No Cost, Approval over the phone.
Refinance Now or Forever Hold your Rate™
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