we might try some more video later
Should I still refinance?
Is it still feasible to refinance your home mortgage? For some it will be worthwhile, for others not. As with everything else, this can only be answered on a case-to-case basis by an Israeli mortgage professional.
If you have a typical inflation-linked fixed-rate shekel mortgage, you will lose money in most instances. The penalty that you will pay is based upon the average interest rate. This rate is the average of the last three months. Since the rates are rising, this means that you will be paying a penalty to a rate which is lower than what you will now receive.
Let's say you have 15 years remaining on a 20-year loan and are paying 5.2% interest. The average rates for a similar loan over the past three months were 3.9, 4.0 and 4.1. If you wanted to refinance that loan right now, you would have to pay the penalty on the difference 5.2-4.0, but only get a 4.1% rate!
If you are financially better off now than you were five years ago, and can afford a higher payment, or want to pay off a portion of your loan, there are still some things that can be done, but if you wanted to just earn something off of an improved rate, you have to do it while the rates are falling, and that probably won't occur again for some time.
If you have an adjustable rate mortgage, call us as soon as possible. The consensus view is that rates will continue to rise in the foreseeable future, and you need to lock-down your low rate now.
