Homeowners on Chicago's North Shore have taken notice that rates are still hovering around historic lows and as a result, have begun thinking about refinancing. However, there are dozens of misconceptions and myths surrounding the topic of refinancing and many in
Glencoe, Winnetka, Highland Park, Deerfield, and Northbrook may still be on the fence about whether or not it's a good move to make.
As your local
North Shore real estate expert, I've included 5 refinancing myths worth clearing up before you make your decision:
1. You Won't Qualify
Your credit may have taken a turn over the past few years or maybe you've changed jobs, but that doesn't mean you won't qualify for a refinance. Guidelines are now loosening again and you may be surprised by what your lender has to tell you.
2. The Term Will Reset to 30 Years
If you've paid off years on your
mortgage, you may be hesitant to refinance and reset the clock to 30 years. That is a relevant concern, but keep in mind that a 30-year mortgage is not the only option on a refinance. A shorter term
ARM (adjustable rate mortgage) could be the better pick given your timeline and future plans for staying (or
not staying) in
your North Shore home.
3. You Missed Your Chance
Rates are still at historic lows, as I mentioned above, and while there is talk that they will continue to rise over the next year, there is still time to save money on your mortgage. Don't let hearsay about rising rates keep you from refinancing if it makes sense for your particular situation.
4. If You Have an ARM, You Can't Refinance
If you took advantage of a lower
interest rate with an
ARM and the higher rate has now set in, that doesn't mean you are stuck. You are still able to refinance into a 30-year mortgage if your credit allows and you are comfortable with the change in your monthly payment.
5. It Takes Too Much Effort
The first step toward refinancing is a call to your local
North Shore lender to discuss how much you could potentially save by locking in a lower rate. This only takes a few minutes and if the outcome is favorable, gathering the necessary documents is well worth it.
Contact me today for more information about the North Shore real estate market, buying a home or
selling your current home in
Glencoe, Winnetka, Highland Park, Deerfield, Northbrook or the surrounding communities!
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Locally or across the country, think of me as your national connection. I can help you with all your real estate needs anywhere in the United States.
