Mortgage rates have reversed course, and refinancing activity is on the rise. That means homeowners who participated in the great refi boom of 2020 are faced with a fresh decision: Should you refi again?
At mortgage lender Lower, that’s a common question from borrowers, says Chelsea Wagner, a regional vice president. In about half of cases, the answer is yes, a second refi could be a savvy move.
“It comes down to: Does it make sense?” Wagner says. “When rates dropped in 2020, everyone went rushing to refinance. It really depends on when you closed.
As the coronavirus pandemic unfolded, rates plunged to record low after record low. So if you refinanced in May 2020, your rate might be 3.5 percent. If you waited until late 2020 or early 2021, your rate could be less than 3 percent.
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