Imagine having a lower house payment. Or, if you’re looking to purchase a new home, imagine getting a lot more house for your money.
There are ways to make it happen, and timing could be key, according to Chris Sbonek, a broker and the owner of Mitten Mortgage Lending.
Sbonek said the Federal Reserve, which controls interest rates, has alluded to several interest rate hikes coming this year.
He went on to say that, someone with a budget of $2,000 a month might be able to purchase almost $100K more in terms of home value right now, compared to in a year, if the rates go up.
Even if you’re not looking to move, Sbonek said there can be benefits to refinancing right now, including:
- A lower house payment.
- Paying off your mortgage more quickly.
- Consolidating debt.
- Saving on interest.
- Escrow fund.
To hear more about refinancing and other financial advice, watch the video above.