Is Now a Good Time to Refinance Your Maryland Home?

If you’re a homeowner in Maryland, you’re probably looking at the low interest rates for mortgages and wondering if now is the best time to refinance or wait and see if the interest rates will drop even lower. In this article, we’ll cover why you would want to refinance, if now is a good time to refinance, and how long it takes to refinance your home.


Why You Would Want to Refinance

You would want to refinance for several reasons: remove an ex-spouse, reduce your loan term, or lower your monthly payments.

Cash Out

A cash-out refinance is a good choice if you want to make home improvements or pay off high-interest debts and don’t have the extra money. While your bank would still have your house for collateral, and you’d have to refinance for a larger sum than what you would currently owe, you have a chance to qualify for up to 80% of your home loan’s value.


Lower Interest Rates

Taking advantage of lower interest rates saves you money on your monthly mortgage payment and the interest you pay back by the end of the loan. For example, if you have a 6.939% interest rate and take advantage of a 5.50% interest rate, it saves you $283 per month, which is $3,396 per year and $101,880 by the end of the 30-year loan.


Remove An Ex-Spouse

If you owned a home with a former spouse, whether they’re a former spouse through divorce or death, you’ll have to refinance your home to remove their name. The same if you own a property with a business partner, friend, relative, or significant other.


Other reasons to refinance:

  • You want to switch from an ARM to a fixed rate, or from a 30-year to a 15-year.

  • You want to reduce your loan term

  • You want to use your rising home equity to eliminate or reduce your monthly insurance premiums.


Is Now A Good Time To Refinance?

Currently, the mortgage rate for a 30-year fixed loan is 6.059%, and the rate for a 15-year fixed rate is 5.405% for those with a credit score of 800 and higher. For those with credit scores of 720-739, the 30-year is 6.293%, and the 15-year is 5.406%. If you have an interest rate of 6.5% or higher, then now is an excellent time to refinance.


What Does It Cost to Refinance?

You’re probably wondering how much it costs to refinance your home and if you have the money to do so. Total closing costs for refinancing your home are between 2% and 4% of the loan amount. While options exist for no-cost refinance loans, the lender makes up for it by charging a higher interest rate, which doesn’t help if you’re refinancing to take advantage of lower interest rates.


How Long Does It Take To Refinance?

It usually takes anywhere from 30 to 45 days to refinance a house in Maryland. However, the process might take longer since other homeowners want to take advantage of the lower interest rates too, and there are also new homeowners who want to take advantage of the lower interest rates to purchase their first home.


Contact Us

If you want to take advantage of lower interest rates, Equity Mortgage Lending is here for you with our fast, hassle-free mortgage process. We work with a variety of clients who love our flexible lending practices. Don’t hesitate to contact us today for more information or give us a call at 1-800-332-9221.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.