Why Refinancing Your Mortgage In 2022 Is A Smart Move
Thursday, Jan 6 2022
While current mortgage rates are a bit above the record lows seen in early 2021, refinancing remains a historically excellent deal. Many homeowners that took out mortgages prior to these record-low rates have not refinanced and are sitting on a bunch of newly acquired equity as housing prices have risen over the last couple of years. Now is a great time to refinance to consolidate debt, do some remodeling or home improvement projects, or remove that PMI that you are currently paying on your existing mortgage.
Refinancing for a lower rate can save several hundred dollars monthly and create a little breathing room in the household budget. As inflation keeps pushing up the costs of everyday goods and services, saving money on your mortgage payment is a no-brainer.
Conversely, waiting to refinance until after interest rates start to increase will end up costing you more money on your monthly payments. While there may still be value in refinancing later in 2022, doing it now before rates tick up will help maximize your savings.
If your goal is to save money on your mortgage and get it paid off sooner, now is the time to take advantage of these historic low rates before they start to increase. Refinancing in 2022 could help you reach your goals sooner with lower monthly payments and savings on interest over the life of your loan.