What you need to know about refinancing

Debi Clingempeel has been waiting patiently for almost a year now.  With interest rates nearing historic lows, Clingempeel has been waiting to refinance.

“My current interest rate is at seven percent, and I wanted to get it down to about 5.5,“ Clingempeel said.

At Valley Bank in Roanoke, Mortgage Specialist Martha Gish-Toney says interest rates are changing up to three times a day.

“It could be for the worse or it could be for the better,“ Gish-Toney said.

She is seeing more and more people in her office like Clingempeel who want to refinance, but there are some things you need to consider before locking in on a lower rate.

“Generally you want to see a one percent deduction for it to make sense to go through the cost of refinancing,“ she said.

Other things you may want o consider include how long you want to stay in your home, your credit score, and the actual cost of refinancing.

If those things look like they are in your faver, Gish-Toney says you should apply and wait for the rate that suits you. 

If you are patient, you could be enjoying a rate a little over five percent like the one Clingempeel locked in Tuesday.   

“I just don’t think you can beat that interest rate,“ Clingempeel said.

Click here if you would like to calculate your mortgage with a lower rate.