According to Freddie Mac's latest weekly mortgage survey, rates on home loans hit their lowest levels of the year in the past week. This is good news for potential homebuyers as it has lowered the cost of owning a home. It is also good news for those who are considering refinancing their home loan as well. Those who are considering refinancing can take advantage of lower rates to lower their monthly housing payments. In addition, there are several other benefits that someone who is contemplating refinancing might consider:
- Building equity more quickly. Rates on 15-year loans are significantly lower than 30-year alternatives right now and this financial move will help save a homeowner tens of thousands of dollars in interest costs.
- Lowering consumer debt payments. Using equity to take cash out to pay off consumer debts can have a significant effect upon a homeowner's monthly payments and might allow them to pay off their home loan more quickly as well.
- Eliminate mortgage insurance payments. Rising home values may make it possible for a homeowner to eliminate costly mortgage insurance payments or consolidate a second mortgage into their home loan with a lower overall payment.
- Move to Safety. Lower rates will enable homeowners to move from their adjustable rate loans to the safety of a fixed rate. Others may opt to move to longer-term adjustables such as those fixed for up to ten years.
Whatever the reason for the refinance, it is not known how long rates will stay this low. Therefore, acting quickly makes sense.
Contact me to get a free mortgage analysis to see whether you might benefit from today's low rates.