Mortgage interest rates are on the rise. Last week ended with a 30-year fixed-rate mortgage averaged at 5.11%. That’s up from 2.97% last year at this time. The increase impacts everyone.
There are different reasons to refinance your home. You may want to take advantage of the lower rates or change the terms of loan. You may need cash for home improvements, college tuition, medical expenses, or to pay off debts. If you’ve built at least 20% equity in your home, then a cash-out refinance is an option for you.
After you’ve taken out a mortgage, there may come a time when you want to consider refinancing your home. A simple way to understand a refinance mortgage is to think of it as replacing your old mortgage with a new one that has more favorable terms or advantages for you.
PMI is private mortgage insurance. It’s a monthly insurance payment tacked onto your mortgage when you’re unable to make a down payment of at least 20%. Though you may not like having to pay PMI, there are two good things about it: 1) It gives you the opportunity to obtain a mortgage with a smaller down payment. 2) It doesn’t last forever.
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