Refinance News

Current mortgage rates are close to all time lows. This is a great opportunity for borrowers and potential home owners to refinance or purchase a new home. Low financing rates can save borrowers thousands of dollars over the life of the loan. The average 30 year mortgage rates were 4.78% this week. Thats just a tad above the all time low 30 year mortgage rate of 4.71%.

You should contact a mortgage professional to see what rate you qualify for:

Texas Mortgage Quote
Florida Mortgage Quote
St Petersburg Mortgage Quote
North Carolina Mortgage Quote
Miami Mortgage Quote
Oklahoma Mortgage Quote
Georgia Mortgage Quote
Long Island Mortgage Quote

The recent low mortgage rates have changed the point at which many mortgage professionals fell that it is advantageous for borrowers to refinance. In the past, many mortgage professionals believed that borrowers should refinance if they were able to reduce their present mortgage rate at least 1 point, however with the recent low rates many people believe this has changed. Since rates are so low, the small change is a greater percent of the original rate.

In the past a 1 point reduction on a rate of  8% was 12.5% decrease of the original interest rate. Now with rates a lot lower a .75 point reduction on a rate of 5.25% is a 14.3% decease of the original interest rate. If points continue to decline borrowers may find it more advantageous to refinance with less of a reduction from the original rate. Borrowers should be aware of this new paradigm as rates continue to decrease.

Rates have dropped to near lows for the year. Many people predicited rates to continue to rise however this may be a great opportunity to refinance. Contact your mortgage professional to see if there is an opportunity for you to save money. Let them share the numbers with you so you can determine if the cost of refinancing make sense for you. Typically, after refinancing there is a specific point in time where a borrower begins to save money subtracting the cost of the transaction.

Good luck and don't forget to take advantage of these great rates!

We'll update you shortly on how this has affected mortgage applications and the purchase market.

Posts

Posts

All Comments

All Comments