There are ways you can make the best of today's economy:
- Consider refinancing your existing loan. Interest rates have fluctuated this year in reaction to the mortgage environment. This has resulted in periods of low interest rates, offering a chance to refinance your loan and lower your payment or keep your payment the same but shorten the term.
- Think about whether it's time to upgrade. Today, there are fewer homebuyers and record housing inventories on the market. If you are in a healthy financial position and you've been considering it, this might be the time to move up to a larger home or even purchase a vacation home.
"The key is to talk to a mortgage loan originator to get a better understanding of current interest rates and your various loan options depending on your financial goals," says Logan Pichel, national sales manager and executive vice president for Mortgage Banking for Regions.
Do You Still Have Options?
Your home is typically your largest investment, and homes have often provided their owners with additional financial benefits like mortgage interest tax deductions.
"Many customers still have a lot of options when it comes to getting mortgage financing," says Pichel. "As long as you have strong credit, can document your income, and have money for a down payment, your ability to secure a mortgage likely has not changed."
Be realistic about what you can afford when considering any real estate decisions. Generally, your mortgage payment should be less than one-third of your pre-tax income. Also, take into account not just your mortgage expenses (monthly payments, insurance, and taxes) but also your other debts and anticipated expenses related to your home such as repairs and furnishings.
At www.regionsmortgage.com, you can find calculators to help you estimate how much you can finance, determine whether refinancing is right for you, and much more. You can also find your nearest mortgage loan originator. Remember that the mortgage experts at Regions are always available to discuss your options.