Three Rules to Refinancing in Hiking Mortgage Rates of 2019
The mortgage rates for 2018 were around 5%, and experts have predicted that it will keep rising within the next year. If you’re thinking of refinancing, there’s a couple of things that you need to arm yourself with. In the upcoming year, we’re looking to see a wave of more houses to sell which should put all the buyers in the driver’s seat. However, there’s also an increase in demand in buying houses which will most likely mean a substantial increase in property prices. This, of course, means that mortgage rates will continue to soar steadily, making houses more difficult to afford by the average American family or individual. A higher demand coupled with a tendency of more sellers has us thinking that building sizes could possibly shrink. In this sort of environment, it’s imperative that you stay on your feet and think quickly to grab even the smallest advantages available to you. If you’re planning on refinancing, read on to see what you should keep in mind in 2019.
Keep an Eye Out for Decreasing Rates
There’s no telling how many people fall prey to their own ignorance every year when it comes to mortgage rates. If refinancing is on your mind, then you need to establish a constant state of vigilance because it’s easier than you think to miss the low-mortgage-rate train. You do not want to be the person to find out a few days later that mortgage prices fell and rose again without your knowledge.
Generally, mortgage prices will likely rise immediately after they’ve fallen. Also, there’s usually a long line of smart people waiting for mortgage rates to fall. You really want to be one them, because if you’re not, you’ll be at the end of the queue and probably miss the boat anyway. Be as informed as you can; it could save you thousands of dollars.
Be Prepared to Act Fast
This goes hand in hand with being constantly informed about mortgage rates. It’s not fun at all, checking mortgage rates, only to be disappointed by them, but this is more important than you might consider necessary. And once you see that the rates are within your comfort zone, just go for it. Remember, a lot of people are probably having the same thought, and you need to get in the pipeline before them so you can refinance successfully.
If you happen to be late, you’ll be in a waiting line, and before you know it, the rates will have changed for the worse, rendering all your hours of research useless. While it’s okay to assume 2019 will be a relatively stable year, it doesn’t hurt to be on top of things and then act quickly to ensure the most comfortable refinancing possible.
Have a Desirable Credit Score
Another thing most people are blissfully ignorant of is that their credit score has a strong influence on the rate of mortgage they can get. You need to have a good credit score if you want to land a proper mortgage rate. Mostly, you won’t be able to get certain rates if your score is too low which can be devastating, especially if you’ve been following the two rules mentioned above. It’s in your best interests to keep that credit score nice and healthy, and if it somehow isn’t, you can easily bring them back up.
If you pay your bills on time, you should see a gradual increase in your score which will really help you out. It’s always worthwhile to ensure that your credit report is free of mistakes (which could very likely exist). Other than that, you should always make sure you’re nowhere near your credit limit, so you should really try and be strong-willed when it comes to impulsive shopping. In a span of a few months, if you stay clean and punctual, you should see your credit score rise to the point where you can take any rate you want.
It’s not easy paying your mortgage, but being clever about it will surely help you out in the long run. It’s definitely worth the discipline and perseverance in keeping an enviable credit score to impact a mortgage that’ll stay with you 30 to 40 years down the line. Keep the newspapers close, and know exactly when to simply go for it.
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