Huntington Bank Reports: Home Buyers and Owners Given Another Chance at Affordability with Recent Dip in Interest Rates
Huntington offers five tips on when to refinance
COLUMBUS, Ohio--(BUSINESS WIRE)-- After increasing during the summer months, interest rates have once again decreased and continue to be at historical lows, giving home buyers another chance at finding a home they can afford.
The decrease in rates, along with increases in home values, also means that home owners have another incentive to refinance their current mortgage or use the equity in their homes for major expenses such as home remodeling, college tuition, catastrophic medical bills or debt consolidation. A Home Equity Line of Credit (HELOC) may be an option.
“We’ve found that many customers are surprised to learn just how much equity they currently have in their homes,” said Jay Plum, consumer and mortgage lending director for Huntington. “Many homes have increased in value in the past year, restoring lost equity to homeowners. Because current HELOC interest rates are significantly lower than many credit card or loan rates available, HELOCs can give homeowners a lower cost borrowing option.”
Buyers and owners who had put off buying a home or refinancing their home, might now take advantage of the current rates. Before doing so, they should consider the following tips.
Five Tips When Considering Refinancing
- Note the rate of your current mortgage or home equity loan or line of credit. If your mortgage or home equity loan has an adjustable rate, it might be a good time to take advantage of a fixed rate loan. If your mortgage has a fixed rate higher than 5% or your home equity loan has a fixed rate higher than 4%, now is probably a good time to consider refinancing.
- Look for a lender that you know and trust such as a local bank.
- Consult with a banker or loan officer who can review your financial goals and provide options so you can make the decision that is best for you.
- Balance the cost of the refinancing versus your monthly savings. If you have to pay $3,000 in closing costs, but you will only save $150 a month by refinancing, it would take up to two years to recover the costs of refinancing. Will you remain in the house long enough to make this worthwhile?
- Carefully consider rolling credit card debt into a home equity loan. Since many people are paying double-digit interest rates on credit card debt, it seems logical to roll any outstanding credit card debt into a home equity loan. However, before doing so, consider the term of the home equity loan and make a pledge to pay any ensuing credit card in full each month. Otherwise, you will run the risk of significantly increasing your debt load.
For more information on home equity or mortgage loans, homeowners may call Huntington’s customer service team toll-free at (888) 841-6458 or stop by a local Huntington branch.
Huntington Bancshares Incorporated (NASDAQ: HBAN) is a $57 billion regional bank holding company headquartered in Columbus, Ohio. The Huntington National Bank, founded in 1866, provides full-service commercial, small business, and consumer banking services; mortgage banking services; treasury management and foreign exchange services; equipment leasing; wealth and investment management services; trust services; brokerage services; customized insurance brokerage and service programs; and other financial products and services. The principal markets for these services are Huntington’s six-state retail banking franchise: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. The primary distribution channels include a banking network of more than 700 traditional branches and convenience branches located in grocery stores and retirement centers, and through an array of alternative distribution channels including internet and mobile banking, telephone banking, and more than 1,500 ATMs. Through automotive dealership relationships within its six-state retail banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customers.
The Huntington National Bank, Member FDIC. The logo mark and Huntington® are federally registered service marks of Huntington Bancshares Incorporated.
Huntington Bancshares Incorporated
Maureen Brown, 614-480-5512
Source: Huntington Bancshares Incorporated
Released November 14, 2013