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Is it Time to Refinance? The Pros Respond

Interest rates have been changing, which makes us all ask, “Is it time to refinance my home?”  We went to our local panel of “experts” to discuss this question and also any other thoughts they had about interest rates for the fall.  Here is what they said.

Amy Smith – Mortgage Loan Officer III with GreenState Credit Union 

  • Is it time to refinance my home?  Yes! If you are planning to stay in your home and the mortgage refinance is beneficial to you.
  • What do you see mortgage interest rates doing in the fall?  Wish that I had a crystal ball to predict.  All signs look like rates will be great and no one knows for sure how possible market changes may affect the mortgage rates on a day to day basis.

John Cannon – Mortgage Consultant with Wintrust Mortgage

  • Is it time to refinance my home? Yes, it’s absolutely time to refinance your home, if you can either cover the costs with a lender credit or recover them in a timeframe that makes sense for you.

By the way, the above is always true, it just happens that with rates this low, more people fall into that bucket. Folks who bought houses in 2018 and 2019 will particularly find that there are real savings out there, but I’m also working with several clients right now who bought in 2017. Rates were pretty good in 2016.

  • What do you see mortgage interest rates doing in the fall?  There is absolutely no way to know what rates are going to do next week, next month or next year. That has always been the case so some extent, but in the current environment it’s really impossible. We’ve seen the stock market improve (which is generally bad for rates) despite terrible economic numbers. The market is really built around one thing right now, and that’s some kind of treatment or vaccine for the virus. Whenever there’s a hint of that, the market goes crazy and rates go up. Then it turns out not to be as real or as soon as hoped, and that unwinds.

If you have a rate available that’s lower than yours by enough that the closing costs are either covered by a credit or recoverable in a reasonable period of time (and you get to decide what “reasonable” means), then do it, and don’t look back. The only thing we know about the “bottom of the rate market” is that we won’t know what it was until it’s gone.

Charles Chedester – Certified Residential Mortgage Specialist, Certified Veteran Loan Specialist & Licensed Mortgage Originator with Midwest Family Lending

  • Is it time to refinance my home? – Refinancing can bring great benefit or be a waste of time & money, the key is reviewing a few things to find out what’s best for your specific goals and situation:
    • What is your current situation – Current Estimate of Value, Current Loan Balance, Current Principal/Int/PMI payment, Loan Term Remaining & Interest Rate
    • Are you looking to: Lower your payment, Pay off the loan faster (shorter term & possibly higher monthly payment), Cash out to consolidate debt(s), remodel kitchen/bath/etc, do an addition or tackle some big/small maintenance items
    • What is your ideal monthly payment (this will help find the most appropriate loan term vs just picking the lowest interest rate possible)
    • How long do you plan to live in this house
    • Do you plan on making any extra payments (monthly, annually or possibly getting an inheritance or some other large influx of cash)

When we consider all of the above, you can be more confident in making the right decision about refinancing.  Tackling your loan review in the manner will also help you find the right mix of “perks” that will help you minimize the interest paid, maximize the equity gained and/or help make your monthly cash flow be as stress free as possible!

Shannon Thome – Senior Loan Originator with Fidelity Bank

  • Is it time to refinance my home? There are many reasons that someone refinance their home.  Knowing if refinancing your home is the best move for you is a personal decision.  I recommend visiting with a mortgage loan professional, going over your situation and seeing if it makes sense.  Most times this can be discovered by answer a few simple questions to determine what the new payment would be.
  • What do you see mortgage interest rates doing in the fall?  My opinion is after the presidential election, we will see rates increase.

Jessica Moeller – Mortgage Loan Originator with Northwest Bank

  • Is it time to refinance my home If you are planning to stay in your home for more than a year or two, now is definitely time to refinance your loan.  If you purchased your home in 2019 or prior there is a good chance you could lower your interest rate and even knock a few years off the loan without increasing your payment too much.  The money you can save in interest is amazing.
  • What do you see mortgage interest rates doing in the fall?  We never know for sure what rates are going to do but it seems like rates will stay low given all that is going on in the world right now.

Yvonne Silvers – Vice President/Loan Originator Bankers Trust 

  • Is it time to refinance my homeI think if you can reduce your rate 1% or shorten the term and don’t plan to move in the near future, it’s a great time to refinance! The rates are at historic lows.  Even if you extend the term, but can save money each month to use elsewhere (invest, payoff other higher rate debt), you are so much further ahead.  There is a lot you can do with that extra cash each month.
  • What do you see mortgage interest rates doing in the fall?  I do think rates will continue to stay low. Especially since this is an election year and Covid has created financial problems for some people, while others have had the opposite.  Some people are busier than ever (i.e. the real estate market). I think keeping rates low with help those who need it or incent people to buy.    I am forever the optimist so fingers crossed we go into 2021 with low rates and a vaccine for Covid!!

All of our experts can be contacted through our mortgage directory :