Mortgage Mistake #4 . Waiting for interest rates to rise before you refinance an adjustable first or second mortgage.
If you follow the economic news at all, I’m sure you’re aware that consumer interest rates have risen sharply over the past few months. Reports indicate that companies are competing for workers so there is upward pressure on wages. Higher wages mean higher inflation and inflation is one of the greatest drivers in rising rates. Over the last 4 months, interest rates have risen approximately ¾%. Our new Federal Reserve Chairman, Jerome Powell gave testimony that indicated we may have 1 or 2 more rate increases before the end of the year.
A couple of questions I have been asked several times over the past few months are, “What should I do about my Adjustable Rate Mortgage?” and “What should I do about my Home Equity line of Credit?” For consumers in adjustable rate loans about to reset or with variable rate credit lines, this can mean a large increase in your monthly payment. You may be able to avoid the increase by refinancing your loan into another adjustable rate loan or a fixed rate loan. With the new tax laws, another factor to consider in 2018 is that interest on Home Equity Loans are no longer tax deductible. Many people are also concerned about the cost of refinancing. In most cases you can add the cost to your new loan and still save money. You also have the option to do a no closing cost refinance by paying a slightly higher interest rate instead. Either way there are many factors that go into making the choice that is right for you. I invite you to call me or one of my experienced associates at Federated Lending at 215-493-1500 x 112 and I will be happy to help.
Mike Pawlikowski
Federated Lending comes through again
Federated Lending comes through again. Tom K. and Federated Lending team helped me through the process of getting my original mortgage and now again with the refinance. They made the process very easy and I am extremely happy with the end result. I would strongly recommend if your looking for a mortgage or refinance that you reach out to the Federated Lending Team.
Patrick Mallon
Federated Lending has great customer…
Federated Lending has great customer service, a very knowledgeable staff, and made re-financing an effortless experience.
Bart Cerami
Andrew Larson and Federated Lending made refinancing my home simple, and saved me a lot of money in the process. And Andy continued to assist me after the closing when I had a question regarding my local tax payment. I have already recommended him to several of my friends and will continue to do so. Thanks Andy!!
Shawn Cannon
Second time working with Vince
Second time working with Vince. Have had nothing but great experiences. Highly recommend!!
Megan Detwiler
We were happy with our experience. Initially there was a step missed that caused a slight delay, but we couldn’t be upset because it ended up getting us a lower rate overall. We were able to sign the documents in the comfort of our own home which was super convenient and appreciated. Would recommend!
Elaine Punchello
I've trusted Federated Lending multiple…
I've trusted Federated Lending multiple times for my home mortgages. They make what can be a difficult process easy to get through. I've never had a delay in a settlement because of my mortgage, which is a frequent issue with other lenders. I'll continue to use them and recommend them. Thanks!
Katie Novak
Federated Lending was a great mortgage…
Federated Lending was a great mortgage company to work with! We were able to ask questions and get immediate answers.
Kristen Katzianer
Easy process from start to finish
Easy process from start to finish. The underwriter should make more money.
Jorge Figueroa
Federated Lending Is Fantastic and Honest
This was such an easy transaction. What is probably the most stressful thing to do Andy and his Team made this absolutely seamless. Everything was done perfectly and right on time. Zero issues at the closing table and it all went exactly as it was explained. I was prepared for so many things to be a push up and there was none of it. NONE! I cannot say enough ...
Jacob Desperak
Wonderful and easy experience!
My wife and I had a very good experience with Fedlend thanks to Andy and Kathy. We couldn’t be more thankful for all the help and guidance we received along the way. Would definitely recommend to all home buyers, as we will use Fedlend for our next purchase or refinance.
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