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Summer Is The Time To Buy Or Refinance Your Mortgage

Summer is the time to buy or refinance your mortgage

Historically, summertime signals that we take heed of the housing market. This wisdom rings especially true here in 2021. Our mortgage experts here at Troy Bank & Trust are advising that this summer in particular will provide record-breaking advantages to buyers of this housing market. In particular, we think that now is the time to buy or refinance. 

The Housing Market Is Hot—But Mortgage Rates Are Hotter

Home prices don’t lie: the housing market is hot right now. And that’s exactly why it’s time to buy. 

Demand is high for a number of specific reasons. Of these major catalysts, there’s one in particular that we’d like to focus on today: record-low mortgage rates. As we’ll see below, over the long term, these historically low interest rates make homes much cheaper than prices would suggest, and the savvy buyer is taking advantage. 

Record-Low Interest Rates Are Outpacing Higher Prices

Mortgages can be confusing. There’s no lack of moving parts. The down payment, interest rate, number of years on the mortgage—it’s hard to know what the best deal is for you. More specifically, it can be difficult to grasp exactly what record-low interest rates mean for you. That’s what the mortgage experts at Troy Bank & Trust are here for. 

At its core, your mortgage deal is defined by your monthly payment. That’s the bottom line, after factoring in all those moving parts. How are interest rates calculated into that number? Just remember, the lower the interest rate, the lower the monthly payment

Think about it this way: In 1982, the mortgage rate touched 17%. Today’s mortgage rate is at a jaw-dropping 3%! But, at mortgage rates of 4%—just a single point higher—your purchase price will need to be about 10% lower for equal monthly payments. And back in 1982, it took just four years for interest rates to double. 

The Federal Reserve is aiming to overshoot inflation in the coming years. Interest rates tend to rise in lockstep with inflation. That’s what makes these record-low interest rates attract so many buyers—and refinancers. 

This Is the Moment To Refinance At Record-Low Mortgage Rates

Just because you’re already a homeowner doesn’t mean you can’t take advantage as well. With summer coming fast on our heels, now is the time to take advantage of record-low mortgage rates. Homebuyers are flocking to for-sale signs to take advantage of these rates before they rise. 

Refinancing your mortgage is a strategy used to capture a better deal on your mortgage. Essentially, you’re making a new deal with the bank, using the current interest rate. Here at Troy Bank & Trust, our mortgage experts are happy to do this so that we can take care of our customers. Our mortgage experts can walk you through your options to help you find the best refinancing deal for you

The pandemic forced interest rates down so the economy could recover. With all the stimulus, rates are already beginning to rebound. This summer may be the last we see of rates this low for quite some time. In fact, we may never find ourselves in a moment like this again. So give us a call at Troy Bank & Trust, and get started on the mortgage deal of your dreams today. 


Find out more about Troy Bank & Trust’s Mortgage Deals

Troy Bank & Trust is a local independent bank geared toward helping our communities grow and prosper. One of our biggest concerns right now is ensuring that homebuyers and homeowners take advantage of record-low mortgage rates while they last. After all, we are “the only bank you’ll ever need.” For more information on our mortgage department, visit Troy Bank & Trust here, or reach out to us by phone at 334-566-4000 or 888-258-8769.