Many Americans are looking for a refuge from the busy city lifestyle that includes rush hour traffic, cell phones, neckties, and deadlines. For some of these individuals, Alaska is the answer to the overwhelming pressures and demands of metropolitan life. At roughly one-third of the size of the continental United States, Alaska boasts some of the most majestic natural beauty in the world. People are catching onto the attractive benefits that Alaska has to offer, which is driving up housing costs at alarming rates. This offers current Alaska residents the unique opportunity of tapping into their home equity in order to make a large investment, pay off debt, or fund a child’s education. Refinancing is the process by which current Alaska homeowners pay for their existing home loan by obtaining another loan. This allows borrowers access to better interest rates, loan terms and time periods, and it can free up some of the equity that you have spent years building in your home.
Quick Alaska Housing Facts:
- Percent of homeowners in Alaska: 62.5%
- Percent of renters in Alaska: 38.5%
- Median annual income in Alaska: $52,910
- Average credit score in Alaska: 674
- Best Alaska city to live in: Anchorage, AK
- Median Alaska home value: $144,200
When to Refinance in Alaska
Knowing when to refinance will ensure that you obtain the best possible benefits that refinancing has to offer. Choosing to refinance when rates are consistently well below (around 1.5 to 2%) what you are currently paying, and keeping track of current trends in the marketplace are two simple ways in which you can determine the right time to refinance. It is also crucial to understand that, while refinancing your home has a multitude of benefits, there are also some heavy costs, responsibilities, and a lot of research associated with the process. Using your equity in a responsible manner is one of those responsibilities. For many people, the idea of gaining access to their home equity means access to a lot of money, but many of these people end up paying more than they would have with their first loan in the long run. To that end, it is very important to determine if and how refinancing is going to save you money. For some, it is a very smart decision that lowers monthly payments and interest rates, but unfortunately, a few will end up paying more than they should have.
How much house can I afford in Alaska
One of biggest problems facing Alaska homebuyers is figuring out how much house they can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget.
Other things you may need to keep in mind when figuring out how much home you can afford in Alaska is: what is your current rent vs what your mortgage payment will be, how much are home taxes in Alaska, and what is your debt-to-income ratio. These are all important question to ask yourself when looking at a new home.
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