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Why November is the Time to Refinance

November 2, 2016

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Waiting for the presidential election to end? Consider refinancing your investment property mortgage before heading to the ballot box.

Although the election is rapidly approaching, there is still time to refinance, and there are many advantages for those who choose to do so. For one, interest rates on the 30 Year Fixed Rate, and 15 Year Fixed Rate loans are extremely low. While the Federal Reserve has been cautious of moving them so close to the national election, the vast majority of futures traders believe rates will rise come December.

“Refinancing at current rates could potentially save individuals thousands of dollars.”

Today’s low rates mean that homeowners won’t need to worry about high monthly payments as they continue to pay down their mortgages. Refinancing at current rates could potentially save individuals thousands of dollars each year, Money Tips reported. A lower monthly payment will make room in an individual’s budget, but homeowners will also always have the option to make payments larger than the minimum amount if they want to pay their homes off faster.

As with any election year, there is also uncertainty about where the markets will go once a new president is inaugurated. With rates at such low levels, it would be wise to lock in a fixed rate right now, according to KIRO, Seattle’s CBS Radio affiliate. If inflation rises, those who refinanced before the rate hike will actually be paying back their mortgages for less money than before, KIRO reported. In addition, a new president might spur changes in the market that influence monetary policy, which could result in the Federal Reserve raising interest rates, according to KIRO.

Many experts believe an interest rate hike is imminent after the election due to signs of economic growth, and Federal Reserve chairwoman Janet Yellen has said that “the case for an increase in the federal funds rate has strengthened in recent months,” Money Talks News reported.

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