George Tillerson III recently discussed how to take advantage of today's low-interest rates by refinancing.
NEWPORT NEWS, VA / ACCESSWIRE / January 13, 2021 / The coronavirus pandemic has brought financial hardship to millions of people around the globe. Mortgages have become more difficult to pay and have even become extreme financial burdens for many. However, financial experts like George Tillerson III are stating that now could be an ideal time to refinance.
George Tillerson III explained that we saw interest rates at an all-time low in April. At the moment, a 30-year fixed-rate mortgage has an average interest rate of 3.23 percent. The average interest rate for a 15-year fixed-rate mortgage is just 2.77 percent. George Tillerson III stated that these interest rates could mean that you should refinance, but only if it suits your overall financial well-being.
However, George Tillerson III added that while right now could be the best time to save thousands while refinancing, there are also some red flags to examine. Lending requirements have recently become much more strict, and homeowners will have to prove they have a steady income to refinance. George Tillerson explained that this could be difficult for the many families facing financial difficulties due to the COVID-19 pandemic.
"Now could be the time to take advantage of refinancing," George Tillerson III said. "But homeowners considering a refinance need to be realistic about their current financial situations. It's important to weigh the pros and cons before making a decision."
George Tillerson III explained that the pros of refinancing could involve transforming your adjustable-rate loan to a fixed-rate loan. It could also reduce your monthly payments, allow you to shorten the term of your mortgage, and eliminate private mortgage insurance.
"The biggest caveat regarding refinancing right now is job security," George Tillerson III said. "It's not the time to refinance if you're at all concerned about job security due to COVID-19."
George Tillerson III explained that it takes several years to start seeing the benefits of a refinance due to the costs of taking out another loan, including closing costs and more. He added that if your source of income is fragile, the increased cost could cause you to be foreclosed upon before you see any benefits of a refinance.
"Right now is undeniably the best time to refinance that some homeowners will see in their lifetimes," says George Tillerson III. "However, with so many brokers pushing a refinance, it's important to remember that it's not right for everyone."
George Tillerson III finished by stating that the decision to refinance isn't one you need to make on your own. He suggested speaking with your financial advisor or loan officer about whether or not a refinance is the best idea for you right now.
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SOURCE: George Tillerson III
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