Sales of existing, single-family homes in California totaled 274,820 in February on a seasonally adjusted annualized rate, up 7% from January’s total, but down 0.3% from February 2025.

In the Inland Empire, sales were up 9% from last month, but down 3.7% from last year, while in Riverside County sales were up 20% from January but down 4% from February of 2025.

“Following a soft start to the year, the housing market regained momentum in February, with both sales and prices showing solid gains,” CAR President Tamara Suminski said in a statement. “The conflict in the Middle East is creating some uncertainty for the broader economy and financial markets, which could lead to some short-term hesitation in the housing market. We remain hopeful though that the situation will stabilize in the weeks ahead, allowing market fundamentals and buyer and seller confidence to reassert themselves.”

Statewide prices were also up last month, with California’s median home price rising 0.9% from January to February, to $830,370. That represents a 0.2% increase from one year ago.

In the Inland Empire, the average price rose 1.1% in February to $601,350, 1.6% lower than February 2025. Riverside County’s average price was down 1.3% last month to $631,000, which is 2.4% lower than one year ago.

“While mortgage rates remain below year-ago levels, they recently jumped to their highest level in seven months and could temper buyer momentum as we head into the spring homebuying season,” CAR Senior Vice President and Chief Economist Jordan Levine said. “However, many homeowners remain locked in to historically low rates, and inventory remains tight, so any stabilization in rates could help bolster home prices in the spring market despite ongoing affordability and economic challenges.”

The county with the highest median home price in California in February was Mono County at $2.35 million, after increasing 50% from last month. The lowest median price was Lassen County’s $199,000, after a 22% drop from last month.

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There’s a grown-up version of that conversation as well. For the first time in nearly four years, mortgage rates have dropped below 6%. But just how many Americans have home-buying money right now?

Half of us struggle to pay our monthly mortgage or rent, according to a recent survey. More than 80% of prospective buyers said last year that difficulty coming up with a down payment plus closing costs was holding them back.

For folks who can buy a home, the falling mortgage rates are great news: Even just one percentage point can represent tens of thousands of dollars over the life of a mortgage.

However, when nearly a quarter of Americans report living paycheck to paycheck, the recent mortgage rate news only highlights the growing disconnect between America’s economy and its people. It’s like hearing the Dow Jones industrial average has crossed the 50,000-point threshold when the wealthiest 10% of Americans own more than 90% of the stock and nearly half of all private-sector workers don’t have access to an employer-sponsored retirement plan.

Democrats are right to point out the shortcomings of President Trump’s economic policies. But what are the policies they are pushing to address the expanding chasm between the haves and the have-nots? Campaigning on the principles of democracy — free speech, peaceful transfer of power, due process — is a response to what Republicans are doing wrong. But those aren’t the issues that motivated voters and brought Trump back to power.

Trump won his second election in part because he sold a vision of wealth — and the promise of wealth acquisition is also part of the American dream. George Washington, John Hancock, Thomas Jefferson … the founding fathers were among the richest men in the colonies. Yes, the American Revolution was a fight for sovereignty. And that was not all philosophical. The American dream was always a material one, with wealth and ownership as centerpieces.

Modern progressives, especially elected officials in office, do not like to talk about money in that way, but the reality is that protecting democracy requires more than upholding the Constitution. It includes making sure people feel as if democracy is working for them. People will assess that in part by whether it’s hard to get by and whether it’s imaginable to get ahead.

That’s one of the reasons the Biden administration sounded so out of touch when it came to the economy in 2024. Far too often, the pain that the have-nots were experiencing during his time in office would be met with metrics that mostly benefited the haves. Same economy, different impact. Case in point: While grocery prices had soared for four years and inflation-adjusted wages were flat, corporations pulled in a record $4 trillion in profit just in the last quarter of 2024. CNN noted that the top five U.S.-based oil and gas companies pulled in profit of more than $250 billion during the first three years of the Biden administration, an increase of 160% compared with the same period of the first Trump administration.

The U.S. economy was breaking records while simultaneously breaking hearts.

Although Trump campaigned on that disconnect, since returning to the White House his policies have only served to exacerbate the issue. So far more than 90% of the tariffs he imposed have been paid for by U.S. consumers and U.S. businesses. We have rising healthcare costs. Trump’s first year back in office was the worst for job growth in a nonrecession year since 2003.

Trump certainly has a lot to answer for, and his response to Americans’ economic pain has been almost word for word the same as President Biden’s.

All of this means that Democrats have plenty to blame on Republicans during the midterm election campaigning this year. However, from a messaging perspective, Democrats have not wowed anyone with an alternative platform — thus the party’s historically low approval rating. Party leaders continue to talk about the fight for democracy, sounding like law professors consumed by theory. Rallying around key economic policy proposals that will help the work force bring home a bigger paycheck is equally important and demands more of the party’s time.

Trump’s critics need to stay on message regarding his attacks on democracy, and sure voters would like to be choosing candidates based on good governance. But when you can’t save money or see a way to buy a house before turning 40, “good governance” becomes a distant second to having money in your pocket.

The message that will resonate most is the one that makes voters feel that in America, you can still have both.

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The rate rose to 6.83% from 6.62% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.1%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose. The average rate increased to 6.03% from 5.82% last week. It’s still down from 6.39% a year ago, Freddie Mac said.

Mortgage rates are influenced by several factors, including global demand for U.S. Treasurys, the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for future inflation.

The average rate on a 30-year mortgage loosely follows moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The yield, which had mostly fallen this year after climbing to around 4.8% in mid-January, spiked last week to 4.5% amid a sell-off in government bonds triggered by investor anxiety over the potential fallout from the Trump administration’s escalating tariff war.

The 10-year Treasury yield was at 4.32% in midday trading Thursday.

When mortgage rates rise, they reduce homebuyers’ purchasing power.

The average rate on a 30-year mortgage had mostly trended lower since reaching just over 7% in mid-January. This week’s increase is the first after three straight declines and brings the average rate to its highest level since Feb. 20, when it was 6.85%.

The increase in mortgage rates may put off some would-be homebuyers during what’s traditionally the busiest period of the year for home sales. Last week, mortgage applications fell 8.5% from a week earlier, according to the Mortgage Bankers Association.

At the same time, the share of applications for adjustable-rate mortgages, or ARMs, climbed to its highest level in 17 months. ARMs lower a borrower’s mortgage payment by reducing the interest rate on a mortgage for a preset number of years before it adjusts to a higher rate.

Earlier this year, forecasts by housing economists generally called for the average rate on a 30-year mortgage to remain around 6.5% this year.

“Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land,” said Jiayi Xu, an economist at Realtor.com. “For buyers, the smartest move is to stress-test their budgets across a range of possible rate scenarios to stay prepared—no matter which way the winds shift.

The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years.

Easing mortgage rates and more homes on the market nationally helped drive sales higher in February from the previous month, though they were down year-over-year.

Home shoppers who can afford to buy at current mortgage rates may benefit from more buyer-friendly trends this spring homebuying season, including a sharp increase in home listings and lower asking prices in some metro areas.

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Here’s the lowdown:

• Sales Slump: The California Association of Realtors® (C.A.R.) reported a seasonally adjusted annualized rate of 262,050 home sales in August – a 6.3% drop from July and the 23rd consecutive month below the critical 300,000 mark.
• Price Plateau: The median home price in California plateaued at $888,740, a negligible increase from July’s $886,560. While still a 3.4% jump from August 2023, it’s the smallest year-over-year gain since September last year.
• Interest Rate Rollercoaster: Though interest rates dipped to their lowest since spring, buyers seem hesitant. However, the Federal Reserve’s signal to potentially lower rates further could rekindle buyer enthusiasm.

Key Factors Influencing Predictions of No Possible Housing Crash in the California

• Stricter Lending Standards: According to the California Association of Realtors (C.A.R.), unlike the loose lending practices that fueled the 2008 housing bubble, today’s stricter regulations make it much more difficult for unqualified borrowers to obtain a mortgage. This helps prevent a similar scenario from unfolding again, where a large number of homeowners default on their loans, leading to a sharp decline in home values. Potential homebuyers must now go through a more rigorous qualification process, ensuring they have the financial stability to handle mortgage payments. This reduces the risk of widespread defaults, which could trigger a housing market crash.
• Low Inventory, High Demand: The supply of houses for sale in California has been consistently lagging behind buyer demand for quite some time. This imbalance is expected to continue in 2024, putting upward pressure on housing prices and preventing a significant drop. With more buyers competing for a limited number of houses, sellers are in a strong position and can command higher prices. This lack of inventory is a major reason why a crash is unlikely.

When Will the Housing Market Crash Again in California?

According to C.A.R.’s 2024 California Housing Market Forecast, the market will experience a significant recovery in 2024, as mortgage rates are expected to decline and more homes become available for sale.

The forecast predicts that existing single-family home sales will increase by 22.9 percent in 2024, reaching 327,100 units, up from the estimated 266,200 units sold in 2023. The 2023 figure represents a 22.2 percent drop from the 342,000 units sold in 2022, which was a record-breaking year for the market.

Home Prices Will Rise in 2024

The median home price, which is the point at which half of the homes sold for more and half sold for less, is also projected to rise by 6.2 percent in 2024, reaching $860,300, up from the estimated $810,000 in 2023. The 2023 figure reflects a 1.5 percent decrease from the $822,300 recorded in 2022, which was also a historic high for the state.

The forecast attributes the price growth to the persistent housing shortage and the competitive market conditions that will continue to put upward pressure on prices.

Factors Behind the Rebound in 2024

The forecast also provides some insights into the factors that will shape the market dynamics in 2024. One of the main drivers of the market recovery will be the lower mortgage interest rates, which are expected to average 6 percent in 2024, down from the projected 6.7 percent in 2023.

The lower rates will make borrowing more affordable and attractive for homebuyers, especially first-time buyers who were squeezed out by the high rates and prices in the previous years.

Another factor that will boost the market activity will be the increase in housing supply, which has been a major challenge for the state for many years. The forecast expects that more homes will come on the market in 2024, as sellers who have overcome the “lock-in effect” will take advantage of the favorable market conditions and list their homes for sale.

The “lock-in effect” refers to the phenomenon where homeowners are reluctant to sell their homes because they fear they will not be able to find or afford another home in their desired location.

The forecast also notes that housing affordability will remain a key issue for the market, as only 17 percent of households will be able to afford a median-priced home in 2024, unchanged from the projected figure for 2023. This means that many potential buyers will be priced out of the market or have to look for alternative options such as renting or moving to more affordable areas.

So, is the California dream of homeownership turning into a crash nightmare?

Not quite. While a market correction is on the cards, a full-blown crash seems unlikely. Here’s why:

• Inventory Inches Up: Although still tight, housing inventory is slowly increasing, offering buyers more options and potentially easing price pressures.
• Affordability on the Horizon: Anticipated lower interest rates promise a much-needed boost to affordability, potentially luring hesitant buyers back into the market.

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Although home prices increased, more listings are finally coming onto the market, giving cash-strapped home buyers more options.

What is happening?

In May, average home prices across the six-county region rose nearly 1% from April to $875,409, according to data from Zillow. It was the third consecutive month that prices hit a record and values are now 9% above May 2023 levels.

Why are home prices rising?

Simply put, there are too few homes for sale in Southern California for all the people who want to buy here.

Economists and real estate agents say the long-running problem was made worse after mortgage rates surged in 2022.

At first, home prices fell as buyers pulled away and the inventory swelled. But prices started rising again last year as homeowners increasingly chose not to sell, unwilling to give up rock-bottom mortgage rates on loans taken out before and during the pandemic.

The pullback among sellers became so prevalent that it even got its own name: the seller strike.

What is happening with inventory?

Things are improving. As interest rates stay higher for longer, more homeowners are deciding to get on with their lives and list their home for sale, deciding additional space, a new job or other factors are more important than keeping a 3% mortgage.

In April, most Southern California counties saw the total number of homes for sale increase for the first time since the first half of 2023.

Last month, inventory jumped again. In Los Angeles County, total listings were 13% higher in May compared with a year earlier; Orange County rose by 6%; in Riverside County, 14%; San Bernardino County, 15%; Ventura County, 18%; and San Diego County, 30%.

“That’s a very positive development,” said Stuart Gabriel, director of the UCLA Ziman Center for Real Estate. “We have just been incredibly short on supply.”

If I a want to buy a home, what does the inventory increase mean for me?

Well, at the most basic level, there will be more options from which to choose.

Inventory is still very low historically so don’t expect your home search to be a breeze, but it could mean fewer bidding wars and an easier time getting into a house.

Gabriel said the inventory increase probably isn’t enough to send home prices down, but, if the trend holds, home prices should rise less than they are today.

Mike Simonsen, founder of real estate data firm Altos Research, said sellers are already more likely to trim their list prices than last year.

He doubts that overall values will turn negative this year and, like Gabriel, expects only slowing appreciation in the L.A. area. But that could change in 2025.

“If rates are still in the 7s, prices flat or down is a real scenario,” Simonsen said.

On the other hand if rates noticeably drop, Simonsen said, demand is likely to pick up more than inventory, setting the stage for home prices to rise even faster than they are now.

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The abnormal scarcity — compounded by the region’s long-running underproduction of housing — emerged when homeowners chose not to sell and give up pandemic-era mortgage rates. The so-called seller strike helped pushed home values to new records, despite rising borrowing costs.

Now the inventory picture might be changing.

“It’s getting a little bit better,” said Eneida Contreras, a Compass real estate agent who specializes in the San Fernando, Santa Clarita and Antelope valleys.

In April, the number of homes listed for sale in most Southern California counties rose from the same month a year earlier, according to data from Zillow.

Los Angeles, Riverside, San Bernardino and Ventura counties turned positive for the first time since the first half of 2023, each recording an increase of at least 5%.

Orange was the only county to see a decline, while in San Diego, inventory has risen for two consecutive months and is 18% above what it was a year ago.

To be sure, the availability of homes remains at historically low levels. But as it rises, it opens the possibility that prospective buyers will have an easier time making the largest purchase of their lives.

Jordan Levine, chief economist with the California Assn. of Realtors, said more homes are coming onto the market because owners are increasingly accepting that the new normal is interest rates in the 6%-7% range.

As people get married, divorced and have children, the “benefit of the low rate starts to be outweighed by having a house that doesn’t work,” Levine said. “Ultimately, these are people’s homes, too, and they are not just straight-up investments.”

Levine said he expects inventory levels to increase and home prices to be lower than they would have been if inventory continued to shrink. However, he and other experts said home prices are unlikely to decline. That’s because though more owners are coming to terms with high rates, many will likely choose to keep their sub-4% mortgages — a phenomenon known as the lock-in effect.

Other factors are at play. The economy is growing, and while most Southern California households can’t afford to buy, there’s a sizable population of techies, Hollywood types and other white-collar workers who can funnel excess cash into large down payments that offset high mortgage rates.

“The current level of inventory rise — which is a little bit, but not a lot — is likely to slow price appreciation but not turn it negative,” said Mike Simonsen, founder of Altos Research, a real estate data firm.

The rise in inventory is providing opportunities for buyers with means, but the market is still tough.

Interest rates are above 7%, and even if home prices rise at a slower pace, they will set records.

In Los Angeles County, the average home price in April was $890,516, an increase of 1.4% from March and surpassing the previous record, set in June 2022.

The six-county Southern California region climbed above its 2022 average home price record in March. It set another all-time high last month, reaching $875,388.

If mortgage rates noticeably decline, the lock-in effect could lessen and bring more homes onto the market. Falling mortgage rates would also immediately make housing more affordable.

Whether falling rates provide much relief is another question. Lower borrowing costs may bring a flood of additional buyers who quickly gobble up new listings and supercharge price growth.

“Building more housing is really what is going to break that cycle,” said Nicole Bachaud, a senior economist with Zillow.

According to the latest forecast from the Mortgage Bankers Assn., rates will remain high but will drop to 6.4% by the end of 2024.

Carol Otero of Rodeo Realty is among the Los Angeles agents seeing an increase in inventory. She estimated that the number of homes for sale in some San Fernando Valley neighborhoods has at least doubled in the past few weeks.

Buyers are eager.

Last Friday, Otero listed a four-bedroom home in Northridge. She said she has received six offers, all above the $869,000 asking price.

The post Buying a home in Southern California? There are now more options appeared first on The Hemet & San Jacinto Chronicle.

The abnormal scarcity — compounded by the region’s long-running underproduction of housing — emerged when homeowners chose not to sell and give up pandemic-era mortgage rates. The so-called seller strike helped pushed home values to new records, despite rising borrowing costs.

Now the inventory picture might be changing.

“It’s getting a little bit better,” said Eneida Contreras, a Compass real estate agent who specializes in the San Fernando, Santa Clarita and Antelope valleys.

In April, the number of homes listed for sale in most Southern California counties rose from the same month a year earlier, according to data from Zillow.

Los Angeles, Riverside, San Bernardino and Ventura counties turned positive for the first time since the first half of 2023, each recording an increase of at least 5%.

Orange was the only county to see a decline, while in San Diego, inventory has risen for two consecutive months and is 18% above what it was a year ago.

To be sure, the availability of homes remains at historically low levels. But as it rises, it opens the possibility that prospective buyers will have an easier time making the largest purchase of their lives.

Jordan Levine, chief economist with the California Assn. of Realtors, said more homes are coming onto the market because owners are increasingly accepting that the new normal is interest rates in the 6%-7% range.

As people get married, divorced and have children, the “benefit of the low rate starts to be outweighed by having a house that doesn’t work,” Levine said. “Ultimately, these are people’s homes, too, and they are not just straight-up investments.”

Levine said he expects inventory levels to increase and home prices to be lower than they would have been if inventory continued to shrink. However, he and other experts said home prices are unlikely to decline. That’s because though more owners are coming to terms with high rates, many will likely choose to keep their sub-4% mortgages — a phenomenon known as the lock-in effect.

Other factors are at play. The economy is growing, and while most Southern California households can’t afford to buy, there’s a sizable population of techies, Hollywood types and other white-collar workers who can funnel excess cash into large down payments that offset high mortgage rates.

“The current level of inventory rise — which is a little bit, but not a lot — is likely to slow price appreciation but not turn it negative,” said Mike Simonsen, founder of Altos Research, a real estate data firm.

The rise in inventory is providing opportunities for buyers with means, but the market is still tough.

Interest rates are above 7%, and even if home prices rise at a slower pace, they will set records.

In Los Angeles County, the average home price in April was $890,516, an increase of 1.4% from March and surpassing the previous record, set in June 2022.

The six-county Southern California region climbed above its 2022 average home price record in March. It set another all-time high last month, reaching $875,388.

If mortgage rates noticeably decline, the lock-in effect could lessen and bring more homes onto the market. Falling mortgage rates would also immediately make housing more affordable.

Whether falling rates provide much relief is another question. Lower borrowing costs may bring a flood of additional buyers who quickly gobble up new listings and supercharge price growth.

“Building more housing is really what is going to break that cycle,” said Nicole Bachaud, a senior economist with Zillow.

According to the latest forecast from the Mortgage Bankers Assn., rates will remain high but will drop to 6.4% by the end of 2024.

Carol Otero of Rodeo Realty is among the Los Angeles agents seeing an increase in inventory. She estimated that the number of homes for sale in some San Fernando Valley neighborhoods has at least doubled in the past few weeks.

Buyers are eager.

Last Friday, Otero listed a four-bedroom home in Northridge. She said she has received six offers, all above the $869,000 asking price.

The post Buying a home in Southern California? There are now more options appeared first on The Hemet & San Jacinto Chronicle.

WASHINGTON (AP) — Average long-term U.S. mortgage rates jumped back up ahead of next week’s Federal Reserve meeting where it’s expected to announce another big increase to its main borrowing rate.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate jumped to 5.23% this week from 5.09% last week. A year ago at this time, the average rate was 2.96%. Until April, the average rate hadn’t exceeded 5% in more than a decade.

The brisk jump in rates, along with a sharp increase in home prices, has been pushing potential homebuyers out of the market.

Mortgage applications decreased 6.5% from one week earlier, the Mortgage Bankers Association reported Wednesday. The group’s composite index, a measurement of mortgage loan application volume, is at its lowest level in 22 years. Its refinance index is 75% lower than a year ago.

Last month, the Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark interest rate by a half-percentage point and signaling more big rate hikes to come. The Fed’s move, its most aggressive since 2000, means higher costs for mortgages as well as credit cards, auto loans and other borrowing for individuals and businesses.

Higher borrowing rates appear to be slowing the housing market, an important part of the economy. In April, sales of both existing homes and new homes showed signs of faltering, worsened by sharply higher home prices and a shrunken supply of available properties.

However, some economists expect that the tapering of demand could benefit the more determined home shoppers.

“The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home,” said Freddie Mac’s Chief Economist Sam Khater.

Homeownership has become increasingly difficult lately, especially for first-time buyers. Besides staggering inflation, rising mortgage rates and soaring home prices, the supply of homes for sale continues to be scarce.

The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, rose to 4.38% from 4.32% last week.

Economists expect the Fed to raise its main borrowing rate by another half-point when it meets next week.

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The average 30-year fixed mortgage rate fell by 0.05% this past week, according to Freddie Mac.

Recently, mortgage and refinance rates haven’t made any big moves. “Rates are going to stay more or less fairly close to where they are…through the summer,” predicts Dick Lepre, senior loan advisor at RPM Mortgage. In the coming weeks and months, you should still be able to take advantage of the current mortgage interest rates. But over the course of the year, some experts expect rates to rise in 2021. “The upside risk to rates is, in my opinion, much higher, then the [possibility] of them dropping lower,” says Rich Swerbinksy, president and COO at Mortgage Collaborative.

Even though it’s impossible to time the market to get the absolute best rate from day to day or week to week, locking in your interest rate sooner rather than later is likely to be the right move.

With rates where they are, the savings available to homeowners looking to refinance could be significant. The average mortgage balance is roughly $208,000. If today’s rates are 1% less than what you’re paying, that would save you $116 a month and you’d save more than $41,000 in overall interest on a 30-year loan.

But the decision to purchase a home or refinance your mortgage shouldn’t hinge only on what rate you qualify for. Here’s what to consider before applying for a mortgage.

What to Consider When Shopping for the Best Mortgage Rate

When shopping for a home loan you should compare mortgage rates. But the best mortgage lender for you may not be the one offering the lowest rate.

The closing costs you pay to get your mortgage, like origination fees or discount points, can add up. These charges vary from one loan to the next, so two loans with the same interest rate can have closing costs that vary by thousands of dollars. If you’re refinancing to save money, paying more upfront means it will take you longer to breakeven. An extra $3,600 in fees would extend your breakeven point by two years if you were saving $150 a month.

Refinancing can also make sense, even if your goal isn’t to just reduce your interest rate. “A greater percentage of the people who are doing a refinance … they’re refinancing and taking cash out to do home improvements,” Lepre says. “I think I’ve got five refis that are rate locked, every one of them is a cash-out for home improvement.” With home prices skyrocketing and rates still low, tapping into your home’s equity with a cash-out refinance can be an affordable way to get a home renovation loan for a remodeling project.

So look at your overall financial situation when deciding if refinancing is right for you. You may be able to save by consolidating other high-interest debt, or increase your home’s value with a few needed upgrades.

Jason Stauffer | Contributed

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Mortgage rates have recently hit near-record lows and Freddie Mac predicts rates will remain low for the foreseeable future.

If you haven’t already taken advantage of the low-rate environment to refinance your home, experts say it’s worth considering.

“There are lots of reasons to refinance your home mortgage when rates go down,” says Liz Bryant, national sales manager for Wells Fargo Home Lending. “Lower rates can reduce your payment, shorten the overall length of your loan and/or provide you access to cash that you can use for home improvements or other expenses.”

Here are a few things to consider if you’re thinking of taking that step:

• It may make sense to consider if your goal is to reduce your monthly payment as well as the interest you will pay over the life of the loan. A mortgage consultant or refinancing calculator can help you decide. Reducing your payment will free up money for saving, investing or spending in other ways.
• Refinancing can shorten the length of your loan, for example, by reducing your loan from a 30-year repayment period to l5 or even 10. That can allow you to pay the loan off faster and reduce the amount of interest you pay. But depending on your individual situation, it could mean a larger monthly payment.
• Some homeowners refinance to tap into available equity. This can be useful if you’re paying for a large project like a home renovation or are making another large purchase. You should talk to a home mortgage consultant to see if a cash-out refinance fits into your long-term financial goals or whether a home equity line of credit makes more sense for this need.
• If you have built up equity in your home, you may want to consider refinancing to remove mortgage insurance. Typically, you can request your lender to remove mortgage insurance if you show you have at least 20 percent equity in your home. However, if you have a government-backed mortgage, you will need to refinance to a conventional loan to remove your mortgage insurance, which will reduce your monthly payment. You can find more details at yourhomematters.wf.com.
• Finally, if you want to move out of an adjustable-rate mortgage and into a fixed-rate one, refinancing may make sense. Depending on rates, your payment could be higher, but doing so will protect you against rising rates in the future.

“If you’re thinking of refinancing, take some time to do some research and talk to your mortgage lender,” says Bryant. “Refinancing may save you money over the long-term and help you achieve your financial goals.”

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