When central bankers, finance ministers from around the world, and some members of the Federal Reserve descended upon Jackson Hole, Wyoming in late August to attend the Federal Reserve Bank of Kansas City’s sponsored 2015 Economic Symposium, the buzz was whether or not the Federal Reserve would increase interest rates in September.
On September 17, we received the answer – No. Interests rates will not increase. Here is a video of Janet Yellen, Chair, Federal Reserve Board, explaining the decision.
For those who have mortgages, now may be a good time to consider refinancing your mortgage.
Here are some advantages to refinancing your mortgage now.
Appraisals:
In Maplewood, South Orange, and Millburn for example, the spring market had many exceptional neighborhood sales. If you were to get your home appraised now, the spring home sales would help the value of your property, which can be used for a period of 3 to 6 months.
As I had said in my previous blog, fall is a great time to buy.
Avoiding PMI:
If you purchased a home three to five years ago with less than 20% down on the home, you are paying PMI, “Private Mortgage Insurance” and your rates are probably close to or more than 5%.
You can check your current online value at www.MyRealPropertyValue.com and see if your current mortgage equals less than 80% of its value to achieve the best rate and avoid paying PMI.
Lenders:
Take advantage of what lenders are offering. There are great incentives to earn your business, such as waiving their application fee, waiving commitment fee, among other incentives. Visit your mortgage company’s web site or research online to see what other companies are offering.
Finally, if you are concerned about what the federal reserve does, watch this New York Time’s video to get a better understanding of the process.
By Robert Northfield, a top real estate expert in the Maplewood, Millburn, South Orange, West Orange areas and surrounding towns at KW Midtown Direct.
