Tuesday, October 21, 2014

Northern Virginia Real Estate: Mortgage Rates Low, Refinancing Looking Up

For many Northern Virginia homeowners, the spring and summer months are viewed as ideal for selling and moving on to a new property. I recently discussed three reasons why fall is quickly emerging as a great time to sell, but one other reason has made its way to the top of the list— mortgage rates!

The 30-year fixed mortgage rate is holding steady under 4% and as a NoVA homeowner, even if you're not ready to sell your home, refinancing is once again looking promising. 

With mortgage rates at their lowest level in over a year, there is a lot of savings to be gained. Even the smallest percentage shift in a mortgage rate can have an impact on the long-term life of your loan. 

A Bank of America analysis recently reported that a median priced home of $221,000 could save $50 a month with just a 0.5 percentage point decline. 

However, it's also important to keep in mind that it takes time to offset the costs of refinancing your Annandale, Alexandria, Fairfax City, Falls Church or Herndon home's mortgage. 

The new interest rate you're getting should be low enough to balance out the fees from your lender, pay for the home appraisal, title insurance and other related costs that can arise. A lower mortgage rate could save you hundreds on your monthly payment, but could also take you upwards of one year to break even. It is always wise to factor this timeline into your decision to refinance!

Refinancing your Northern Virginia home with today's historically low rates could be a lucrative opportunity for many homeowners. If you were one of the 20 percent of eligible households who failed to refinance when rates first started to decline, consider this your second chance!

With my expertise in Northern Virginia real estate, I can help you take advantage of this exciting time in the market! Contact me today to discuss selling your home in the area or for a financial expert recommendation to assist you with a refinance!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

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