Is Now A Good Time To Refinance My Home In Phoenix, Arizona?
Mortgage Banker
Richard Blair
Published on June 29, 2021
Refinance Your Home | Phoenix Arizona

Is Now A Good Time To Refinance My Home In Phoenix, Arizona?

Arizona home mortgage and refinance interest rates reached historic lows in 2020 and 2021, leading many homeowners in Phoenix, Arizona, to refinance their home loans and lock in lower monthly payments or more desirable loan terms.

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Current mortgage refinance rates in Arizona remain lower than in previous years, so you may be wondering whether to refinance your mortgage. Whether your goal is to eliminate mortgage insurance payments, secure a lower interest rate, switch from an adjustable rate to a fixed-rate mortgage, or extend the length of your loan, refinancing may be a good option for you.

When you shop mortgage refinance rates, you might notice a difference between refinance rates vs new mortgage rates. For a variety of reasons, new mortgage rates are, on average, lower than mortgage refinance rates. This doesn’t mean you may not benefit from refinancing your Phoenix, Arizona home mortgage. However, you should understand the differences between obtaining a new loan and refinancing your existing loan and explore all options before deciding if refinancing is the best choice for you.

What is refinancing?

When you refinance your mortgage, you are obtaining a new loan to replace your existing one. You may refinance your mortgage through your current lender or accept a loan from a new lender.

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Homeowners seek mortgage loan refinancing for a variety of reasons:

  • Some homeowners seek Arizona mortgage refinance to secure a lower interest rate to reduce their monthly mortgage payments.
  • Homeowners with equity accumulated in their homes may seek to cash out a portion through refinancing.
  • Borrowers who wish to pay off their mortgage sooner than anticipated may refinance their 30-year mortgage loan by obtaining a new 15-year mortgage loan.
  • To reduce their current monthly payments, some homeowners may choose refinancing to extend the length of their loan.
  • Those with adjustable-rate mortgages in Arizona may wish to refinance when rates are low, so they can lock in lower rates.
  • Still, others choose to refinance to eliminate their private mortgage insurance payments.

In nearly all scenarios, borrowers seek a refinanced loan to secure more favorable interest rates or loan terms. However, homeowners must do their research before accepting a new loan to yield the desired results.

Why should I work with a mortgage loan originator to refinance my home?

If you’ve never refinanced a loan before, you may wonder, “what does a loan originator do?” Similar to obtaining a new mortgage loan, working with a mortgage loan originator to refinance your Phoenix home mortgage can help you secure the best rates and terms available to you while simplifying the entire loan process.

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Good mortgage refinance companies will be honest and up-front with you about the fees associated with mortgage refinancing so you can make the best decision. For some homeowners, the best refinance options for their mortgage won’t be those with the lowest rates but those with the most favorable loan terms, so they pay less over time. When you work with a Phoenix, Arizona mortgage banker, they can help you understand all your options and get a better sense of the refinancing rates and terms available to you.

Though there are plenty of good reasons you might want to consider Arizona home mortgage refinancing, there are fees and other factors you need to consider. While you may see advertisements for no-cost mortgage refinancing online, the reality is every loan has associated costs. Those advertising “no-fee refinancing” are simply hiding the full cost in the fine print.

Is 2021 a good time to refinance my home in Phoenix, Arizona?

Though lower interest rates may seem to signal that now is the best time to refinance, the truth is there is no universal rule. Refinancing might make sense for one homeowner right now while another homeowner wouldn’t enjoy the same benefits.

Verify my mortgage eligibility (May 20th, 2022)

The average mortgage interest rate in Arizona reflects just that—the average. The rate available to each homeowner depends on many factors, including their financial situation, credit history, home value, and more. In January 2021, mortgage rates dropped to their lowest recorded level across the country. Though they have modestly crept upward over the past several months, they are still low relative to past years.

If you’re unsure if you should refinance your mortgage in 2021, several factors can help you weigh your options:

  • Will you be staying in your home for several years? Most (but not all) refinancing options will require time before you “break-even” and begin saving money. If you plan to move soon, refinancing may not be a good option for you.
  • Has your credit score improved since you first secured your loan? If you have significantly better credit now than before, you may benefit from refinancing.
  • Are interest rates at least 1% lower now, on average, than the rate on your current loan? You may benefit from refinancing at a lower interest rate or trading in your adjustable rate for a fixed-rate mortgage, which will save you over the remaining time of your loan.
  • Is your income higher or lower than it was when you applied for your mortgage? If so, you may wish to refinance and pay off your loan sooner than anticipated or obtain a longer loan term to help reduce your monthly payments to a more manageable amount.

Refinance Your Home | Phoenix Arizona

Verify my mortgage eligibility (May 20th, 2022)

How can Richard Blair of Dwell Mortgage help me refinance my home in Phoenix, Arizona?

Richard Blair Mortgage Team of Dwell Mortgage began with a desire to improve the home mortgage industry. We are committed to pairing an excellent client experience with innovative technology, speed, and efficiency. When you work with us to obtain the best refinance options for your mortgage, you can be assured we’ll move with urgency and communicate proactively.  We’ll provide you the best options available and the information and education you need to make the best financial decisions for yourself and your family.

Our straightforward process to refinance your mortgage in Arizona begins with a quick analysis. After answering a few questions, our Arizona refinance mortgage calculator will analyze your unique circumstances and provide appropriate options. We’ll work with you to compare terms and refinance mortgage rates in Arizona and answer any questions you have about closing costs and other fees so you are empowered to choose the offer best for your needs.

We put the financial well-being of our clients above all else. Sometimes, though a homeowner qualifies for one or more refinance loan products, our analysis indicates refinancing isn’t in their best interest. Though our clients are always empowered to determine how they’d like to proceed, we believe it’s our duty to be transparent, even if it means they choose not to accept a loan.

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In Conclusion

With Arizona mortgage refinance rates at or near historic lows, refinancing offers significant benefits to many homeowners. To find out the best refinance options for your mortgage, start by talking with a Phoenix, Arizona mortgage banker.

At Richard Blair Mortgage Team, we have more than 20 years of experience and are committed to helping our clients obtain the most favorable refinance rates and terms. We pair personal attention and cutting-edge technology to ensure our clients receive an excellent customer experience with deep insights into all their available options.

Are you considering refinancing your Phoenix, Arizona home? Talk to a knowledgeable member of the Richard Blair Mortgage Team today. Our goal is to make refinancing faster, easier, and more transparent anywhere else. We are always happy to answer any questions you might have about the process to help you decide if refinancing is the right decision for you. Please send us a message or call us at 480-542-1085 today.

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