With the 2016 US presidential election just around the corner, people are asking themselves who to vote for. Donald Trump or Hillary Clinton? But there’s also another question in the minds of a lot of Americans: Should I refinance my mortgage before the 2016 US election?
The short answer is “Yes.” There are a lot of reasons to refinance your mortgage now, not after the election of the new president of the United States. Here are some of them:
1. Current mortgage rates stay put near record lows
Americans spend a large portion of their gross income, almost a third of it, on their monthly mortgage payments. With interest rates now lower than 3.5%, according to Freddie Mac, you could be saving a lot of money by refinancing.
You can use our mortgage calculator to see how much you can save by refinancing.
2. Beware of inflation
Election years usually come with inflation. Due to the rising prices of gasoline and rents, US inflation climbed even higher in September. However, this can be a good thing. If you have a fixed-rate mortgage at today’s low rates, you will be paying your loan back with devalued dollars. So lock in your mortgage now, while you still can!
3. Home prices are also on the rise
Home prices have also been rising. So, if you’re paying mortgage insurance, there’s a really good chance that you might not have to do it anymore. If you have enough equity in your home, you don’t have to pay private mortgage insurance.
4. Change is coming
With a change of administration, there will definitely be changes in other areas as well. Interest rates are low at the moment, but they may not stay like that for long. A new monetary policy will definitely affect rates and possibly get them to rise.