Looking to refinance in Minneapolis? Finding the best Minneapolis refinance rates is not all that hard if you are willing to do a little bit of research. Read on to learn the ins and out of refinancing in Minneapolis, Minnesota and then enter your zip in at the top of the page to compare Minneapolis mortgage refinance rates online!
In trying financial times (or really anytime at all) it can become necessary to reduce regular monthly bills in any way possible. In the wake of the housing bubble, subsequent market corrections and the economic downturn there may never be a better time to consider home mortgage refinancing as a way to reduce one of the largest bills most Americans pay each month.
It is important to have a complete understanding of the terms of the new mortgage so that you don’t end up paying so much in unexpected fees that you aren’t getting a benefit from your lower interest rate. As with any service, comparison shopping can help you get a better deal.
Minneapolis Home Values
Many factors can affect the value of your home including how populated an area is, its demographics, cost of living, local culture and weather. For instance, homes in un-crowded areas where the cost of living is low, cultural opportunities are plentiful and the weather is pleasant should have better property values. Here's a look at our city.
Minneapolis has a population of over 1 million people whose median age is 36. The population has increased approximately 6.5% since 1990. Minneapolis is home to some 27 colleges, 26 junior colleges, many restaurants, bars and movie theaters, 165 public golf courses and 4 museums. Residents of Minneapolis have a median income of $53,000.
The sales tax here is 6.75% and has state taxes that range from 7.85% for the highest brackets to 5.35% for the lowest brackets. The state has personal and property crime risk ratings that are above the national average. With the national average for each of these statistics being 100, we have a personal crime risk of 122 and a property crime risk of 161. Each year this city sees 29 inches of precipitation annually with highs of about 83 degrees Fahrenheit in July and lows of about 4 degrees Fahrenheit in January.
The Housing Market and Minneapolis Refinance
The latest statistics show that the housing market in Minneapolis continues to improve and it is gaining stability. Mortgage rates for 30 year home loans dropped to 5.04 as of September 2009. Home sales rose in July and pending home sales were up 16%. During this same time, the price at which the average home sold dropped 17% to $171,000.
What about foreclosures? The number of foreclosed properties on the market contributed significantly to the average home sale price, since the drop was only 6% when foreclosed homes were not included in the calculation. The presence of foreclosed homes in a given area will cause a decrease in home values and can result in difficulty refinancing.
Minneapolis Refinance Terms and Cautions
When looking into refinancing any mortgage, caution is important because even if the mortgage rate is lower than that of your current mortgage you may not end up saving money since banks can often charge upfront fees that will eat up any savings you may have been expecting. These fees are called closing costs and can include points, title searches, private mortgage insurance, attorney fees, recording fees, and application fees.
In recent years, some lenders have moved to waive these fees and offer low or no cost refinancing as a way to make refinancing more appealing and perhaps cut down on the number of loan defaults and foreclosures. These low cost and no-cost refinancing options do make refinancing a somewhat more transparent transaction, but knowing what has been waived and what you are required to pay is still vital in determining whether to refinance. Homeowners with good credit ratings will usually get better rates and terms since more lenders are anxious to get their business.
When Should Homeowners in Minneapolis Refinance?
Many experts say that refinancing will pay off if the interest rate for potential new mortgage is 2 points lower than that of your current mortgage. However, timing is everything. Interest rates fluctuate rapidly. You may be able to wait for a better rate.
On the other hand if you are able to get a rate that is 2 points lower and are able to qualify for a no cost mortgage loan, you can wait too long and any number circumstances could impact your ability to take advantage of the benefit of refinancing. For instance, mortgage rates could rise again. Lenders could decide to change loan to value limits causing you to need more equity in order to refinance or tighten their lending practices. You could lose your job and your credit score could decrease.
If you are sure refinancing is going to save you money why wouldn’t you take advantage of the savings and as quickly as possible?
Compare Minneapolis Refinance Rates!
If you think that you might be in a good position to refinance and that refinancing your home loan will result in savings, why not get Minneapolis, MN home loan refinance rates from several different companies? Comparing rates from competitors will help you to make sure that you are getting the very best rates and terms for your new mortgage. You can get free Minneapolis home loan refinance rates by using the rate quote tool above. Get started today!
