Should You Refinance Right Now?
Friends and Clients —
As we all know by now mortgage rates keep lowering and hitting new records.
Did you know that the average 30-year fixed mortgage rate already dropped 13 times in 2020 to levels we have never seen before. Right now the average mortgage rate is 2.72%, which is 0.5% lower than six months ago and a full percentage point lower than last year.
What does this tell us? It seems that right now is the best possible time for current homeowners to refinance their properties.
So far 4.6 million homeowners have already refinanced their mortgages this year. However, not everyone is taking advantage of this never-seen-before opportunity, approximately 19.4 “high-quality” mortgage refinance candidates have not taken advantage of this opportunity, according to Black Knight, a mortgage technology and data provider.
These homeowners could potentially save about $309 per month if they refinance. Not only that, around 4.5 million homeowners could save at least $400 a month, and 2.7 million could save more than $500 per month.
The question becomes, should you refinance now?
Theoretically, mortgage rates could drop even more. However, mortgage rates are bounded below by the Fed rate, and the Fed has signaled it is not willing to drop its rates much further. It is unlikely mortgage rates will fall further. Nonetheless, they can definitely bounce back up.
On the flip side, the process of refinancing your home means huge amounts of tedious and unpleasant paperwork.
It can definitely help to find a trustworthy professional who can guide you through this process and help you save as much money and time as possible.
If you decide to take advantage of the current rates and refinance your property, it will be my pleasure to recommend you to my most trusted mortgage brokers. Or, if you decide to do a cash refinance (where you take out some of the money), then knowing what your home is worth right now will be beneficial.
Take a look at this home value calculator, based on recent sales in your area, to get started.
Additionally, if you or someone you know is looking to buy a home, the current mortgage rates are in your favor. Great homes recently became available on the (area) market. To see the most up to date list of current listings click the link below.
Have a great day,