Is this the right time to refinance?

By Peter Daas

Interest rates worldwide have dropped to all time lows. The national average interest rate for a refinanced mortgage in the US is around 5.5% right now. For homeowners, this means they could be saving serious money by refinancing right now.

Refinancing is often done to improve living conditions. The extra money can be used for extra groceries, a bigger or newer car or another goal that homeowners might have. Of course, the money that gets freed up by refinancing might also be used for home improvement, to increase the value and selling power of a house.

Houses are not selling as quickly as they used to, so a couple of added improvements might mean your house will sell faster for a better price. In the current market you need all the help you can get, and a well finished home is a big help in selling. Using the money that is liberated by refinancing your mortgage for home improvement is a smart investment decision.

The process of refinancing can best be handled by an expert. Don't choose your lender based purely on the lowest rate, but look at the best mortgage for your situation. Choosing the right kind of mortgage will make you debt free, choosing the wrong type of mortgage will get you in trouble down the road.

About the Author:

Peter writes articles about mortgages in English. He writes articles about hypotheek tarieven and beleggingshypotheek oversluiten in Dutch.