Thinking of Refinancing? Here’s Why 2018 May Be Too Late

Amidst the hustle and bustle of the holidays, it’s easy to push financial to-dos to the wayside.

That’s what tax season is for, right?

When it comes to refinancing your home loan though, that might be ill-advised. In fact, waiting until next year may cost you dearly.

Is refinancing your mortgage anywhere on your radar? Here’s why putting it off could hurt that bank account:

REASON 1: Interest rates might increase.

The Federal Reserve has been setting the stage to raise interest rates – and soon, too.  According to Patrick Harker, president of the Federal Reserve Bank of Philadelphia, he’s even “lightly penciled in” one for next month. And in 2018? He expects the Fed to raise rates another THREE times.

Once those rates go up, it could send mortgage rates up as well – especially if the economy remains strong. Today’s mortgage rates are near historic lows, so if there’s even a chance rates might rise in the coming months, the time to pull a trigger on your refinance is now – before it’s too late.

REASON 2: You want those tax write-offs.

Want more write-offs on your upcoming tax returns? Refinancing by the end of 2017 is the way to do it. Once you pay off your initial loan, you can write off any amortized points on it – which can lower your total taxable income and make your tax burden much lighter as a result. Be sure to check with your tax consultant or personal accountant to see what these write-offs would mean for you personally.

REASON 3: You’ll save more in the long run.

Once you refinance to a lower rate, that means a lower monthly payment and, more importantly, less spent on interest over time. Refinancing may also save you in mortgage insurance premiums, depending on how much equity you have in your home, as well as other costs on your current loan – especially if you have an FHA mortgage or participated in a low-down payment program.

And the quicker you start saving cash? The more you stand to save in the long run. That means more money for holiday shopping – and more money saved as long as you own the home.

REASON 4: You can simplify your finances.

What better way to start the year than by consolidating your loans and shrinking your monthly payment? It means simpler budgeting, easier bill payment and a better financial situation on the whole. With a refinance, the New Year really can mean a clean slate financially.

Are you thinking about refinancing? Do it before rates rise, and potential savings dwindle. Schedule a 15-min consultation and start the process today!

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