Lowest Mortgage Rates in Months: Refinance Time?
Lowest Mortgage Rates in Months: Refinance Time?
If you have been paying attention to the mortgage rates the last few months, then you will know that we are seeing 7-month low mortgages. The rates now are better than the majority of rates we have seen at all in the past few months. At the moment, the national average for a 30-year fixed mortgage sits at 4.12 percent. At around the same time last year, the rates were quite a bit higher; this is definitely a relief for people since it is the prime real estate season. Mortgages have been struggling to really get going in 2014 with the new rules but they are seeing great improvement.
The question to toss around in your mind is this one: Is it time to refinance a mortgage with the rates being so low? There are several things you should consider, even assuming that you will be approved for a new mortgage.
How is your financial situation? If you are looking to save some money, then you will find that refinancing is a great way to do that. One popular way of doing this is to do a cash-out refinance, which is when you borrow money against the equity in your home. People use that money for other debts like credit cards, large purchases like remodeling, etc. However, this scenario is good for certain people, it is not the solution for everyone. Consider if you want to do a refinance if you have the confidence, you would hate to have anyone sign you up for a mortgage that is unfavorable.
When would your breakeven period be? This is a major factor in your decision to refinance or not. You have to look at how much it will cost to refinance and how much you will save each month. Figure out how many months it will take for those savings to happen to see a gain. If you plan on staying in the home for a long time, then a refinance is likely a good option; if you plan on moving in a couple years, it is probably not your best solution.
The bottom line is this, are you ready and do you feel comfortable? Even if you have an inkling of a "yes" to either or both of those questions, then you can talk to someone about doing a refinance. As an online mortgage broker, you can always talk to us or try our mortgage calculator and see how a refinance would benefit you.
If you have been paying attention to the mortgage rates the last few months, then you will know that we are seeing 7-month low mortgages. The rates now are better than the majority of rates we have seen at all in the past few months. At the moment, the national average for a 30-year fixed mortgage sits at 4.12 percent. At around the same time last year, the rates were quite a bit higher; this is definitely a relief for people since it is the prime real estate season. Mortgages have been struggling to really get going in 2014 with the new rules but they are seeing great improvement.
The question to toss around in your mind is this one: Is it time to refinance a mortgage with the rates being so low? There are several things you should consider, even assuming that you will be approved for a new mortgage.
How is your financial situation? If you are looking to save some money, then you will find that refinancing is a great way to do that. One popular way of doing this is to do a cash-out refinance, which is when you borrow money against the equity in your home. People use that money for other debts like credit cards, large purchases like remodeling, etc. However, this scenario is good for certain people, it is not the solution for everyone. Consider if you want to do a refinance if you have the confidence, you would hate to have anyone sign you up for a mortgage that is unfavorable.
When would your breakeven period be? This is a major factor in your decision to refinance or not. You have to look at how much it will cost to refinance and how much you will save each month. Figure out how many months it will take for those savings to happen to see a gain. If you plan on staying in the home for a long time, then a refinance is likely a good option; if you plan on moving in a couple years, it is probably not your best solution.
The bottom line is this, are you ready and do you feel comfortable? Even if you have an inkling of a "yes" to either or both of those questions, then you can talk to someone about doing a refinance. As an online mortgage broker, you can always talk to us or try our mortgage calculator and see how a refinance would benefit you.
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