Refinancing When Mortgage Rates Are Going Up

Mortgage rates have been rising, and housing economists are well aware of this and even expected it. It has climbed steadily and is believed to continue doing so, especially when discussing 30-year fixed-rate mortgages. For buyers looking to purchase properties, this can be a worrying fact, especially since the higher the rates, the more the overall costs. Fortunately, at these rates, refinances are actually an amazing deal, so if you’re in the market for refinancing, now might be a perfect time to do so!

Refinancing When Mortgage Rates Are Going Up

While the Federal Reserve did announce that its taper of asset purchases will begin, mortgage rates shouldn’t be affected by it in any way, spike-wise. However, the gradual rise will be in play, and it is already apparent. Many people expect the average rate on a 30-year mortgage to reach 3.5 percent by mid-2022 and even 4 percent later in the year. However, it is fair to say that many mortgage experts have mixed predictions about this whole situation. As you can see, some believe that rates will go up, while others believe that they will go down or stay the same. As such, if you are in the market for a mortgage, now is the time to do so. There’s little point in waiting, as deals now are just as good as they will ever be.

While rates are a little higher nowadays, refinancing remains an excellent solution for many looking to save on their mortgages. This is because more and more people are looking to refinance, and lenders are offering great deals to attract as many borrowers as possible. That said, competition is still relatively high among those who can purchase. Despite the higher rates, good deals should be accessible, and there will be plenty for you to pick from.

What does all this information mean to you? You must spend the time researching the rates you have now and find one that fits your needs and budget. If you find one with better rates that can act as your refinancing solution, do it immediately. Shorter mortgages have much better rates than their 30-year counterparts, and not making this jump only means you are paying unnecessary costs. In fact, despite the rise of mortgage prices now, it is still near its record low, meaning that refinancing is still an incredibly viable option for you if you are looking to save money on your mortgages.

Your Refinance Experts in Illinois and Beyond

We said many times, and we’ll say it again: if you can refinance now, do it. There are plenty of excellent deals in the market that can help you save money and earn benefits along the way. Just make sure to spend the time researching for trustworthy mortgage providers to ensure that the solutions you get meet your needs, budgets, and expectations. It might be tempting to jump on the first deal you get, especially if you see low rates. However, more often than not, there will always be a better deal out there, so taking the time to compare various offerings will allow you to make an informed decision that will help you save money in the long run.

MidAmerica Bancorp, Inc. offers a wide range of mortgages for various home buyers, no matter their situation in Oak Lawn, Burbank, Hickory Hills, Chicago, and throughout Illinois, Indiana, Florida, Michigan and Wisconsin. If you are looking for the best refinance rates, reach out today and contact us at (708) 237-4050!