Refinancing in 2023. What to Know!

With the economy in flux, everyone is talking about refinance rates in 2023 and what they’ll look like. But what does it mean for you? Is refinancing today a good option, or is it better to wait until 2023? Here’s what you need to know.

Why Refinance?

Homeowners can take advantage of their home’s equity to pull money out during a refinance. The most common reasons to consider this include the following:

• Reducing mortgage payments
• Consolidating more than one mortgage loan
• Using cash for home renovations or improvements
• Debt consolidation and pay off
• Eliminate PMI
• Avoiding foreclosure

Knowing When to Refinance

Refinancing today is a challenging idea. The rates are high, having gone up over the last few months, doubling to rates seen earlier in 2022, including the hike in July that was the largest one-week increase since 1987. Refinance rates are complex and knowing when to jump in and refinance your mortgage can be a bit of a guessing game. There are conflicting expert opinions on what will happen in 2023. Some predict rates will continue to go up, at least at the beginning of the year, while others anticipate a reversal of the jump we’ve seen recently. With higher rates leading to a cooling real estate market, some see them dropping as early as the beginning of the year.

While waiting to take action until you know the refinance rates in 2023 is not a bad idea, there’s no time like the present to start information gathering for refinancing your home. Contact the experienced team at Midland Mortgage Corporation for all the information and guidance you need to help you navigate mortgage refinancing.

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