With interest rates near historic lows, many homeowners can benefit from refinancing.
The future looks bright for homeowners who want to refinance.
By Julie Ann Snyder – Feb. 6, 2015
Now is the time if you’re going to refinance. Why? Interest rates are still at historic lows, and while some say that it’s possible they could go lower, it’s also possible that rates will start going up. As of February 1st, Freddie Mac reported that the average rate for a 30-year fixed mortgage was 3.63 percent. Although the week before, it was slightly lower at 3.61 percent.
The bottom line is that if you’ve been thinking about refinancing, this is absolutely the time to do it, and here are some good reasons to contact a lender now:
Interest rates are low. Yes, they have been low for some time which makes borrowing cheap. Common sense says that this last forever, although we are not suggesting that rates will begin to rise tomorrow, but why wait? The Federal Reserve just said at their regular meeting last week that interest rates will likely remain low for the near future.
Responsible people should not wait. How many second chances do you need? In mortgage lending and refinancing, the consumer has had ample opportunity to get their “house” in order. The rule of thumb is that if you are going to be staying in your home for more than three years, and you can get an interest rate one point lower than what you currently have, it may be the right opportunity and time to refinance your current mortgage.
Mark Capper of United Reality agrees. “Now that rates down to 3.4 percent, this is the magic time to refinance,” he says. Interest rates haven’t been this low since March of 2013, which allows homebuyers who bought a home after that time, and who currently have interest rates between 4.5 to 4.75 percent to jump back in and refinance now. It’s always a good time to save money.
Even people who refinanced back then might benefit from refinancing now, Mark says. “If they refinance now, they could lower their rate by 1 percent,” he says. “As an example: A $450,000 loan with a 4.75 percent interest rate refinances into a 3.6 percent interest rate and will have a savings of an estimated $300 a month.” Who doesn’t want to save $300 a month?
With all of the hype, we still haven’t found any lenders telling homebuyers that it’s not a good time to refinance. There are multiple lenders we work with including iWantaBetterMortgage.Com. Mark says; “that’s a great place to start and compare mortgage rates”. The bottom line is that now is the time!