Although interest rates are predicted to rise in 2022, the mortgage market has already seen major fluctuations. So, if you’re watching the rates with refinancing in mind — either to lower your payments or tap into your home’s equity — here are some things to consider.
A rate/term refinance can lower your loan’s rate, change its term, or both. For example, if your income’s increased over the past years, you can apply to refinance to a shorter loan term. This provides major savings by lowering your loan’s total interest.
In addition to shortening your loan’s term, if you prefer to keep more of your take-home, you may be able to refinance to a longer term.
Thinking of tapping into your home’s equity with a cash-out refinance? Ask me to compare your refinance costs with a home equity line of credit (HELOC). Both are smart options for financing anything from a major remodel to a new vehicle, as they can save you money with their lower interest rates.1

Thank you to Mark Sanders, Prosperity Home Mortgage, for this guest blog post. You may contact him at 609-707-4756.

It never hurts to shop around for a better deal…including homeowners’ insurance. Even if you “bundled” your homeowners’ and auto insurance with one insurer in exchange for a discount, there are other ways to lower your premiums.

Bump up your security. Adding a monitored alarm system, high-tech locks, or a combined fire alarm/sprinkler system can earn you a 5% to 20% discount while providing an extra bonus: additional peace of mind.
Check out lesser-known discounts. If you work as a teacher, firefighter, or engineer, you may qualify for a lower rate. If you don’t have any smokers in your household, you may also save.
Get credit for home improvements. If you’ve recently installed storm shutters, tough roofing, or replaced your plumbing or electrical systems, any or all of these could increase your savings.2

Thank you to Mark Sanders, Prosperity Home Mortgage, for this guest blog post. You may contact him at 609-707-4756.

The Federal Reserve raised interest rates by .25% last month, with more rate hikes to follow. While higher rates contribute to higher prices, they also battle inflation by lowering consumer demand and slowing economic growth (think of rate hikes as bad-tasting but effective medicine).
This inflation-fighting strategy may create a “good news, bad news” scenario for this year’s home buyers. While higher rates will push home prices higher, they’re also expected to help cool hotter real estate markets and eventually increase inventory. However, it may take some time for this to happen.
Rate hikes won’t just affect mortgages. Other types of loans, including consumer credit, may also become more expensive. Since economists are predicting rate hikes up to 2.8% by the end of the year, you may want to plan your winter holiday shopping in advance.3

Thank you to Mark Sanders, Prosperity Home Mortgage, for this guest blog post. You may contact him at 609-707-4756.