Recent reports have shown that the values of homes in nearly all U.S. markets continue to increase. In some hard hit markets values are up more than 50% over the lows they hit in recent years. In most every market housing values have been steadily increasing.
Increasing housing prices open several options for homeowners and perspective homeowners:
Refinancing to remove mortgage insurance (PMI) — A large percentage of American homeowners purchased their homes with less than a 20% downpayment. That means those homeowners are paying a monthly mortgage insurance fee. For instance, FHA loans include mortgage insurance. When a home increases in value it opens the possibility of refinancing to a new loan with no mortgage insurance. Contact us to get an estimate on the current value of your home to see if removing your monthly PMI is possible.
Cash out refinances — As values of homes increase, the possibility of getting cash out refinances returns. For families who owe quite a bit less than their home is worth, a cash out refinance can be a terrific way tap into the equity of a home. And with rates still historically low, cash out refinances make sense for a lot of families.
Home purchases — As we have discussed in the past, increasing home prices are generally a good thing for families considering buying a home. When home prices are increasing, the home you buy this year should be worth more in the years to come.
Contact us in the form in the sidebar today to learn more about the options available to you. Now is an excellent time to start while mortgage interest rates are still hovering near historic lows.