Now is the Time to Consider Refinancing

It may seem like there is a lot of doom and gloom in today’s real estate market, but it is an ideal time to refinance your Hoboken home. Currently, interest rates are at a record low of 4.25 percent for a 30-year fixed loan.

It has been reported that applications for refinancing have nearly quadrupled within the past quarter.

Everyone should take a closer look to see if they can significantly lower their mortgage. Although credit standards are a bit tougher now, it is not as difficult as you would think to get a new loan in Hoboken.

If your credit score is 740 or better, you are in great shape to refinance. If your score is at 720, 700, 680, 660, 640 or 620, you will find increased pricing for a given interest rate at these scores.

A big hurdle to get over is to make sure your loan will be equal to or less than 80 percent of the value of your home. Otherwise, you will be required to pay mortgage insurance, which could wipe out the monthly cost of a lower interest rate.

If you want to refinance in order to take cash out, experts generally agree that now is not the time, especially in this economic climate. Don’t “cash out” in this market. Instead, only refinance if you can reduce your interest rate enough. In other words, you should only do this if refinancing is going to significantly lower your monthly payments.

For help in finding and closing on your perfect Hoboken home, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, as well as Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

Explore posts in the same categories: Hoboken Homes, Live in Hoboken


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