Rates on 30-Year Refinance Mortgages Sink, Match Record Low
While employment, housing, and the economy in general remain in tough shape, refinance and home purchase mortgage rates have officially sunk to record lows. Last week, Freddie Mac reported that average rates on 30-year mortgages have fallen to a level matching the record low interest rates reached this past spring. Rates for 30-year mortgages averaged 4.78 percent last week, down from 4.83 percent the prior week and equaling the record low reached the week of April 30.
The average rate on a 15-year fixed-rate mortgage fell to 4.29 percent, down from 4.32 percent last week, according to Freddie Mac. The 15-year rate hasn't been this low since Freddie Mac started tracking it in 1991. Rates on five-year, adjustable-rate mortgages averaged 4.18 percent, down from last week's 4.25 percent. Rates on one-year, adjustable-rate mortgages were 4.35 percent for the second consecutive week.
It is important to note that the rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year and one-year loans. The fee averaged 0.6 point for 15-year and five-year mortgages.
So, what does this all mean?
It means that homeowners could very well be in a position to refinance into a historic low mortgage rate and benefit financially for numerous home loan scenarios.
While refinance mortgage rates are so low, lets go over some possible refinancing scenarios that could pack a powerful savings punch for both short-term and long-term loan scenarios.
One option that can produce both short-term and long-term benefits is the regular refinance into a 30-year fixed mortgage. Most qualified homeowners should be able to shave at least 1 to 2 percentage points off of their current mortgage rate. Depending upon the loan amount, monthly savings can be quite significant.
Another option is to refinance for short and long-term goals is to do a debt consolidation loan. Borrowers that qualify normally reduce their overall monthly payments by several hundreds per month with this strategy when interest rates are even much higher than current, so this option could be a huge money-saver for those holding credit card, auto, and installment loan debt.
How about getting that 1st and 2nd mortgage refinanced into one historic low fixed rate? The savings can be quite significant and reduce the hassle of holding 2 mortgages. This could be an especially enticing option for those that currently hold variable rate 2nd mortgages and HELOC loans. The Fed is hinting that short-term rates may be rising soon, which could cause those variable interest rates and corresponding monthly payments to rise significantly.
Maybe it’s time to refinance out of that ARM mortgage? If you are currently in an ARM, your current mortgage rate might not be that bad, but for the reasons mentioned prior, it could be a good time to jump out of that variable rate before they soar up again.
I’ll mention one more power-packed benefit loan scenario and my all-time favorite for taking advantage of today’s low rates. It’s of course, refinancing into a shorter-term mortgage. The caveat here is that your monthly principal and interest will most likely increase, but if you qualify and are comfortable with the new monthly payment, watch out! Those refinancing from a 30-year loan into a 15 year mortgage at today’s rates will typically save anywhere from fifty thousand to the hundreds of thousands of dollars (depending upon borrower’s current interest rate and loan size) in saved interest over the term of the loan. And you might be surprised that your monthly payment does not go up as much as you might think, because of how the amortization repayment schedule works on a shorter-term mortgage loan.
Are those enough options? Enough of a reason to check out a home refinance at today’s rates? Actually, there are probably countless other refinancing scenarios that can produce significant benefits for borrowers at the current interest rates, but I just wanted to go over a few of the major ones.
I try not to be a sales-pitch man with the information provided here, but at current refinance rate levels, many people are eligible for some great financial deals. In today’s tough economic times, any bit of financial relief can be a great benefit for individuals and families across the US. Whether you request information or rate quotes from the Refinance Tool Box, or another place, a home refinance might be worth checking out for your benefit.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
The average rate on a 15-year fixed-rate mortgage fell to 4.29 percent, down from 4.32 percent last week, according to Freddie Mac. The 15-year rate hasn't been this low since Freddie Mac started tracking it in 1991. Rates on five-year, adjustable-rate mortgages averaged 4.18 percent, down from last week's 4.25 percent. Rates on one-year, adjustable-rate mortgages were 4.35 percent for the second consecutive week.
It is important to note that the rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year and one-year loans. The fee averaged 0.6 point for 15-year and five-year mortgages.
So, what does this all mean?
It means that homeowners could very well be in a position to refinance into a historic low mortgage rate and benefit financially for numerous home loan scenarios.
While refinance mortgage rates are so low, lets go over some possible refinancing scenarios that could pack a powerful savings punch for both short-term and long-term loan scenarios.
One option that can produce both short-term and long-term benefits is the regular refinance into a 30-year fixed mortgage. Most qualified homeowners should be able to shave at least 1 to 2 percentage points off of their current mortgage rate. Depending upon the loan amount, monthly savings can be quite significant.
Another option is to refinance for short and long-term goals is to do a debt consolidation loan. Borrowers that qualify normally reduce their overall monthly payments by several hundreds per month with this strategy when interest rates are even much higher than current, so this option could be a huge money-saver for those holding credit card, auto, and installment loan debt.
How about getting that 1st and 2nd mortgage refinanced into one historic low fixed rate? The savings can be quite significant and reduce the hassle of holding 2 mortgages. This could be an especially enticing option for those that currently hold variable rate 2nd mortgages and HELOC loans. The Fed is hinting that short-term rates may be rising soon, which could cause those variable interest rates and corresponding monthly payments to rise significantly.
Maybe it’s time to refinance out of that ARM mortgage? If you are currently in an ARM, your current mortgage rate might not be that bad, but for the reasons mentioned prior, it could be a good time to jump out of that variable rate before they soar up again.
I’ll mention one more power-packed benefit loan scenario and my all-time favorite for taking advantage of today’s low rates. It’s of course, refinancing into a shorter-term mortgage. The caveat here is that your monthly principal and interest will most likely increase, but if you qualify and are comfortable with the new monthly payment, watch out! Those refinancing from a 30-year loan into a 15 year mortgage at today’s rates will typically save anywhere from fifty thousand to the hundreds of thousands of dollars (depending upon borrower’s current interest rate and loan size) in saved interest over the term of the loan. And you might be surprised that your monthly payment does not go up as much as you might think, because of how the amortization repayment schedule works on a shorter-term mortgage loan.
Are those enough options? Enough of a reason to check out a home refinance at today’s rates? Actually, there are probably countless other refinancing scenarios that can produce significant benefits for borrowers at the current interest rates, but I just wanted to go over a few of the major ones.
I try not to be a sales-pitch man with the information provided here, but at current refinance rate levels, many people are eligible for some great financial deals. In today’s tough economic times, any bit of financial relief can be a great benefit for individuals and families across the US. Whether you request information or rate quotes from the Refinance Tool Box, or another place, a home refinance might be worth checking out for your benefit.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: economy, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
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