Posted by Apex Home Loans ● January 13, 2021

Should I Wait to Refinance? Tips for Timing Your Refinance in 2021

Refi in 2021

Freddie Mac reports that interest rates hit all-time lows 13 times in 2020. As homebuyers seize on the opportunity to jump into the market with more purchasing power, homeowners across the county are obtaining new-and-improved mortgages at lower rates, contributing to a veritable refinance boom. For mortgagors who have held out to see just how low interest rates drop, the question is: should you keep waiting for rates to get even lower?

The Case Against Playing the Waiting Game

The risk with waiting is that the window of opportunity that has been prevalent recently may narrow. Michael Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), predicts that rates will rise to 3.3% in 2021, 3.6% in 2022, and 3.9% in 2023. That rise is echoed by the National Association of Realtors, who predict interest rates will average 3.2% by the third quarter of 2021. Using these institutions as a frame of reference, waiting may reduce the benefits of your refinance.

Reasons to Wait

Still not convinced? We understand – if someone told us one year ago that the entire world would need to wear masks due to a mysterious virus transmitted through the air, we’re not sure we would have believed them. The point is: no one can predict the future. Should the economy not rebound as expected – or even if the vaccine does not amount to the silver bullet we hope – interest rates could continue to fall. If you would like to hold out longer, consider Auto-Lock, a program offered by Apex. Auto-lock allows homeowners to set a specific rate target at which their refinance will save them thousands of dollars over the life of their loan. When that rate is available, our system immediately secures that rate. Learn more about auto-lock and enroll here.

Refinancing Resources

Whether you’re ready to refinance today or plan to wait to see what the future of 2021 holds, Apex Home Loans has resources to help you choose the mortgage that’s right for you. Learn the objectives you can achieve by refinancing and tips to ensure a smooth process by clicking below.

Tips for a Smooth Refinance   Contact Us


Topics: First Time Homebuyer, move up buyer, second time home buyer