Good time to refinance mortgage, experts say
June 8, 2016
By RACHEL MURRAY Dayton Daily News - Tribune News Service
If you are hoping for a lower monthly mortgage payment, shorter terms, or a fixed rate, experts say now is a good time to get moving to refinance.
Lee Charters of Huber Heights, Ohio, said she refinanced her condo in February to pay it off more quickly.
"I went from a 30 year to a 15 year mortgage and I'm really glad I did it," said Charters, adding that her payment only increased about $4 a month.
"It is always a good time to finance when rates are low and rates are still at historically low levels. Fifteen year interest rates are still in the high twos and you can do a 30 year fixed in the mid to high threes," said Cindi Pegg, production manager with PrimeLending in Dayton.
On Monday, Federal Reserve chair Janet Yellen indicated that the economy is improving, but still uncertain, so it's unclear when interest rates will rise again.
"They'll have the intention of increasing rates, and then some bad economic data will come out that will have them hold off again," said Pegg.
If you are looking to refinance your mortgage, lenders now need to verify everything about you, according to Pegg.
Typically, you will need two months of bank statements, your W-2 for the past two years, and 30 days of pay stubs to get the process started.
A refi might not be for you if your home value hasn't increased enough to gain equity, or your credit score has taken a hit since you bought your home, said Pegg.