Lower Interest Rates Good for Homeowners|Channel 7 News

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Lower Interest Rates Good for Homeowners

posted 9:17 am Thu January 24, 2008 - Little Rock

tags: arkansas • homeowner • interest • rates

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There could be good news for some Arkansas homeowners, despite the ongoing economic rollercoaster in the United States.

As federal interest rates get lower, so do many mortgage rates, meaning now could be a good time for some homeowners to refinance.

When it comes to refinancing your home, mortgage lender Jan Turbeville says there is one key rule to remember.

(Jan Turbeville, mortgage lender)"What you want to do when you're refinancing is to better the situation you are in."

And now could be a good time for credit worthy Arkansas homeowners to do just that.
Recent cuts in the federal interest rate have caused mortgage rates to go down as well, but Turbeville says refinancing is not for everybody.

(Turbeville)"It's not just a fun thing to do because interest rates are lower...you want to look at all of the angles to make sure you're saving yourself money."

So who would benefit from refinancing? Well, if Turbeville says it could be a good option for someone who has lived in their home 10-11 years, has made their payments on time and can get a rate 1.5 to 2% lower than their current rate.

On the flip side, if you have lived in your home a year or less and still owe almost your full loan, refinancing is not a good idea because the small amount of equity you have built up would be consumed by closing costs.

Ultimately, if you're thinking about refinancing the best thing to do is to review your papers from when you closed on your home the first time and then call a mortgage lender to decide if that if refinancing is a good idea.

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