Mortgage rates have shot up since early November, so buyers can expect an interest rate between 4 and 4.5 percent this year. With the changes to the mortgage industry in mind, MarketWatch offers a financing guide for 2017.
The site says that buying a home is still worthwhile, but that buyers should know that a half-percent increase to an interest rate could equal an extra $75 to $80 a month in payments.
As for those who want to refinance, going from a 30-year mortgage to a new 30-year mortgage might not produce a lower interest rate, but opportunities such as cash-out refinancing, shortening the loan term, and dropping mortgage insurance could be beneficial.
If you’re looking to purchase a house or refinance one you already own, and there is a financial benefit to the terms and rate you qualify for, act on it. Let affordability be the driver of your decision to purchase or refinance a home to meet your financial goals. The market will always change and evolve, and if you can justify the opportunity, it should be something for you to seriously consider.