The effects of coronavirus continues to spread in the United States. Today, many consumers are considering refinancing, as mortgage rates reached a historic low. This writes Fox Business.
But the truth is now is the best time to refinance loans? Possible.
While the Federal reserve did indeed cut interest rates, mortgage lenders have tightened restrictions, so the refinancing process can be a bit more complicated, especially when it comes to qualifications. Test pre personalized mortgage rates on the site Credible by reference.
Factors that can affect mortgage refinancing include capital, your credit rating and whether to allow the refinance to drop your private mortgage insurance. If you have at least 20 percent equity in your property, you are more likely to benefit from refinancing a home.
In some areas of the country, mortgage rates are more profitable than others, so if you live in one of these cities, the cost of refinancing can be recouped.
7 best cities for mortgage refinancing
Salt Lake City (Ut)
Average house price: $419 987
Average savings: $197
Housing prices in salt lake city last year grew by more than 5%. The population grew by almost 10% in the previous decade.
Average house price: $283 000
Average savings: $133
The average home value increased almost 3% from 2019. Houston has been a year of sales with a constant supply of available homes and record number of sales of single-family homes.
Average house price: $467 621
Average savings: $219
Housing prices rose by almost 6.5% since March of last year. In addition, home sales in the area increased, and inventory, which created a higher demand. The house was on the market less time than the average.
Los Angeles (CA)
Average house price: $752 508
Average savings: $354
Over the past year, housing prices in Los Angeles rose nearly 6%. House prices in California, known to be high due to the large amount of sunlight and the lack of affordable housing.
Charlotte (North Carolina)
Average house price: $252 438
Average savings: $119
Housing prices rose 5.3% over the last year. Home sales in Charlotte fell by 21% in April, but sales prices rose to COVID-19. Despite the lack of shopping, housing prices remain stable.
Average house price: $767 906
Average savings: $367
The price of houses increased by 2.2% compared to last year. Housing prices in Seattle have grown steadily over the past year, and Seattle was recognized as the fastest growing housing market in the country.
Average house price: $270 290
Average savings: $136
Housing prices rose nearly 3% compared to last year. The role is considered to be the second most popular real estate market in the country. The increase in the number of jobs in the technology sector and real estate investment increased the cost of housing.
If you decide to refinance your mortgage, use Credible to compare rates from several lenders at the same time.
For those who pay the mortgage and has no right to refinance, help is available. Talk with your lender to find out how they help their clients.