By TJ Trembley

Why are mortgage rates suddenly so low? The Federal Reserve has recently cut short term rates; does that mean mortgage rates were cut also? Can we expect mortgage rates to stay low? If you are one of the many people who find themselves asking questions like these, you should consider visiting the Wealth Enhancement Group to learn about how refinancing can help you to take advantage of these low rates.

Interest rates on fixed rate mortgages have recently tumbled due to fears of an impending recession. The federal government has responded by aggressively cutting short term rates. These rate reductions are designed to spur the economy; however, they also add to inflationary pressure, and fears of inflation will drive up long term interest rates. If the rate cuts work as intended, the economy will avoid a recession, and it is likely that 30-year fixed mortgage rates will increase. If you have an adjustable rate Home Equity Line of Credit (HELOC) you will experience an interest rate reduction - watch your statement.

Does this drop in rates mean it is time to consider refinancing options? Possibly. The window for refinancing to a lower rate may be closing soon, and now could be the time to take advantage of this opportunity. One option to consider is what’s known as a “No-Cost Refinance.” A “No-Cost Refinance” interest rate is generally one-half percent above the going interest rate, and you don’t have to pay closing costs; the bank takes care of the costs for you.

Are you paying private mortgage insurance? If so, you may have noticed the recent decline in home values. Now may be a good time to look into options for eliminating costly mortgage insurance.

Do you have inefficient high-interest debt? Consider consolidating inefficient debt into efficient debt by combining a low interest rate mortgage with interest that may be tax-deductible.

Please contact us if you have questions regarding any of the information provided. If you are considering purchasing or refinancing a home, contact Wealth Enhancement Mortgage Services, LLC to discuss financing options that are consistent with your overall financial plan. You do not need to be a current Wealth Enhancement Group client in order to take advantage of the many services we have to offer.

For more information, please call or email Wealth Enhancement Mortgage Services.

info@we-mtg.com
800-492-1222