Declining interest rates have homeowners considering updating their mortgage
Tim Steffen, CPA, CFP®, CPWA®
Director of Advanced Planning
Baird Wealth Solutions Group
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Homeowners who diligently follow mortgage interest rates may soon be tempted to refinance their current loan. However, there are a number of things to consider beyond the lower rate before starting the refinancing process.
Decreases in mortgage rates often bring a flurry of activity around home buying and refinancing of existing mortgages. After a fairly steady rise in rates over the last two-and-a-half years, rates are beginning to move downward again, causing current homeowners to ask – is now the time to refinance?
Source: 2019 Primary Mortgage Market Survey, 30-year fixed-rate mortgage, Freddie Mac, published March 28, 2019.
However, just because the interest rate offered by your bank is lower than what you’re paying now doesn’t mean it makes sense to automatically refinance the loan. There are a variety of factors to consider before giving your bank the OK to draw up the paperwork.ARE YOU EXTENDING THE TERM OF YOUR LOAN?
Robert W. Baird & Co. Incorporated. Baird does not provide tax advice. Please consult your tax advisor.