COLORADO SPRINGS — Historically low mortgage rates are rebounding back up. Those that are trying to refinance their homes may be wondering if it’s still a good idea.
Plenty of people are wanting to refinance their homes and one real estate group thinks there’s still time to find advantages. Peak Price Colorado Real Estate said they’re getting two to three calls per day from those that want to refinance.
Because homes being sold so quickly, there aren’t many to choose from. That’s why people are choosing to refinance their homes with lenders at lower mortgage rates, according to Peak Price Colorado Real Estate.
“It’s not a shortage, it’s more of a rapid sale. So whatever comes on the market sells really fast. So that has lead people to refinance their home right now instead of buying a new home because they can’t necessarily find something to buy,” said Karen Schaefer, realtor of Peak Price Colorado Real Estate. “So we’re also seeing people add to or update their mortgages. It’s kind of an interesting market. One we haven’t seen before.”
Peak Price Colorado Real Estates added that people are refinancing for two primary reasons.
“Number one, rates are still historically low so they can refinance and lower their monthly payment. The other reason is we’re a very equity rich market right now. What that means is we’ve been steadily appreciating over the last five years so homes have a lot of equity so people are refinancing to tap into that equity to use it to make home improvements, maybe pay off their student loans, things like that, ” said Schaefer.
Schaefer added that if you have a proactive lender and you are engaged in the refinancing process including submitting the paperwork on time, you can expect about a six to eight-week timeframe. The appraisal may be where some hold-up could be and Schaefer said a 60 to 90-day time frame isn’t unheard of as well.
Schaefer said it’s inevitable for mortgage rates to go up but she is confident it will slowly go up and down.
“I don’t think we’re going to see people stop refinancing,” she said. “Even if the rate goes up, I think they’ll go up slowly and people will still continue to refinance as long as it’s worthwhile for them.”