Refinance Your Dallas Mortgage as Home Equity Rises
Mortgage rates are lower than ever, and rising home equity is allowing more Dallas home owners to take advantage of these low rates. In the first quarter alone, home values increased 7%, creating instant equity for home owners in the Dallas area.
An article from money.cnn.com reports on the ways home owners can refinance. Reports show that home equity rose 18% from the third quarter of 2011 to the third quarter of 2012. Higher equity means that Dallas home owners are able to refinance their mortgages at record low rates when they otherwise may not have been able to.
Those home owners who don’t have the 20% equity required to refinance may consider an FHA loan or private mortgage insurance (PMI). PMI qualifying guidelines have eased, and the rates have gone down in the last several years, particularly when compared to FHA.
Trying to avoid monthly PMI? No problem, there are many options available. Home owners can finance up to 95% of their home’s value and still avoid monthly MI.
The rise in home equity is also making it easier for home owners to access their equity for things like their children’s education and debt consolidation. With mortgage rates so amazingly low in comparison to credit cards, student loan rates, etc. These lower rates make accessing your home equity a much more affordable option than the alternatives.
Rising home values also allows more people to start home renovation projects, such as sprucing up old kitchens or bathrooms. According economist Stephen Melman, “People aren’t looking for anything really sexy, just how to live better in the house.” More home equity gives Dallas home owners a chance to update their house, and these renovations then help boost the home’s value.
Rising home equity makes now a great time to explore Dallas mortgages. To learn more about Dallas loan programs, feel free to complete our brief home loan questionnaire, or feel free to call us directly to speak with a Certified Mortgage Planning Specialist at 972-499-0454.