Why Now Might be the Right Time For Houston Homeowners to Think About Mortgage Refinancing

By Gabriel Traverso
Local Lender Columnist
Sep 19, 2007
This could be the ideal time for refinancing your Houston home. Mortgage rates, while low, are on the rise and Houston prices are still holding strong.

Refinancing Your Mortgage

Whatever the reason behind the strength of the Houston real estate market, if you are sitting on home equity you may be considering whether or not refinancing is a good move. After all, there are plenty of financial advisors out there who will tell you that rather than sit on equity you should take the cash out and invest it elsewhere to get a higher return. If you have more lucrative investment opportunities available, or if your debts are growing out of control, then mortgage refinancing or a home equity loan might be the right move for you.

Sitting Pretty in Houston

A number of real estate markets in Texas are doing very well despite the housing slump so much of the country is facing. In fact, Houston is one of six Texas cities in the top twelve of CNN's forecast for the 100 largest housing markets. While some markets are dropping by as much as 9%, Houston home values are projected to go up 3.2% in the next year.

The Right Time to Tap Into Home Equity

In the first half of this decade home values skyrocketed and the average U.S. home went up almost 60%. Since Houston is still enjoying price appreciation, now might be the ideal time to tap into your home equity by refinancing your mortgage. Rates are on the rise and are projected to continue to climb into next year. As you start the refinancing process use a mortgage calculator to budget how much loan you can afford. Lastly, check with multiple mortgage lenders and compare the refinancing they can offer in order to make sure you get a good deal.

Sources
The Wall Street Journal
CNN Money

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.