BOULDER – 2015 was the Year of Equity. Many homeowners along the Front Range saw the equity in their properties increase, and it was a great time to consider refinancing. Those who didn’t refinance last year may want to consider it this year.
Homeowners refinance for many different reasons. They could refinance to get cash out of their home to purchase another property, buy a car or pay for education. Refinancing can also allow them to remove their PMI (primary mortgage insurance). In an event of a divorce, a homeowner might need to refinance to change households.
Why was 2015 a “Refi Rally”? Low rates (in the 3% range) drove the boom in refinances last year. The Mortgage Bankers Association (MBA) predicts rates will go to 4.5% to 5% in 2016. It’s important to note that the MBA made the same prediction last year as this year, and rates went into the opposite direction expected.
Regardless of the rate environment, there are a variety of reasons to refinance, and I expect refinances will continue to be a popular option.
For more on this subject, visit the Elevations Blog at elevationscu.com/refi.
Lacey Hoenshell is a Mortgage Loan Originator at Elevations Credit Union in Boulder. If you have questions regarding mortgages, please call 720.562.4612 or email firstname.lastname@example.org.