Refinancing your mortgage? Opportunity knocks

Homeowners seeking to save some on mortgage payments can celebrate: The average rate for 15-year, fixed-rate mortgages, one of the most popular refinance products, has dipped to its lowest level since June 2013.

The 15-year fixed hit 3.08% according to Freddie Mac’s weekly survey, a tenth of a percentage point lower than last week and down sharply from 3.36% early in the month. Rates for 30-year loans dipped 0.05 percentage point to 3.92%

“For borrowers hoping to pull the trigger on a refinance, this spate of the lowest mortgage rates since June 2013 is a pretty good opportunity,” said Keith Gumbinger of HSH.com, a mortgage information company.

With equity markets on a roller coaster and bad economic news roiling Europe, investors have fled to safe havens in bonds and mortgage-backed securities, depressing interest rates.

It’s a boon for existing homeowners with mortgages a few years old. Borrowers can swap their old 30-year loans at, say 5% or more, for spanking new 15-year loans at the current rate.

Their payments may not fall — as a matter of fact, they’ll go up by about $340 a month for someone refinancing a mortgage balance of $200,000. But instead of making payments of $1,075 a month for 25 more years, they’ll pay $1,423 for 15 years and then be mortgage free. So, if they can afford the higher monthly bills, borrowers can save more than $137,000 in interest over the term of the loan.

The opportunity may not last long, though, according to Gumbinger. Markets are very volatile right now, so rates could change quickly.

“It pays to be prepared to jump and lock in a rate when they come along,” he said

Advertisements

About thenoelteam

As a Broker with RE/MAX Alliance, I work energetically for my clients whether they are a buyer or seller. I help you achieve your goal of owning a home or getting the best price for your home in the shortest time possible. After graduating from UCLA with a degree in communications and finance, I was licensed in 1977 and since then I have sold over 3600 properties amounting to over $1 billion in sales. I currently rank in the top 10 in home sales for Colorado. I offer the same quality of service and superior communication to all clients, ranging from starter homes to multi-million dollar estates, commercial and income properties, relocations and foreclosures My goal is to provide you with the best representation possible whether you are buying or selling. Over the years, one of the things that I've discovered is that there is a difference in the way individual Realtors do business. For me, I have always felt that honesty and personal integrity are the foundations upon which a successful business and career are built and sustained. I have an extensive background and knowledge base in real estate, including financing, which has enabled me to provide outstanding, quality advice and service not found with many agents today. My commitment to communication creates a positive relationship between my client and myself that results in a successful property sale or purchase. My passion for real estate, commitment to my clients and personal integrity has helped me to achieve success placing me in the top 1% of all brokers in nationwide. In my career, I have earned a number of awards and received considerable recognition for my success but the most significant recognition comes from the fact that over 75% of my business comes from past clients. My success is a true measure of my client satisfaction.
This entry was posted in For Home Buyers and Sellers. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s