Is it a Good Time to Refinance Your House?
With mortgage interest rates at historic lows, millions of Americans are deciding to refinance their houses and get lower rates. So the answer to the question in that headline is YES. There has never been a better time to take a walk down ReFi Street.
Rates on 15-year fixed and 30-year fixed mortgages are falling through the floor. They set new records for “low” every month.
At the end of March, the 15-year fixed rate hit another record low of 3.11 percent, and the 30-year fixed fell to 3.88 percent, which is just a hair above the 3.87 percent record low set in February.
In this economy, the 15 year fixed rate mortgage is a very popular choice for those looking to refinance. With a 3.11 percent interest rate, the monthly payment on the 15 year fixed is just a little bit more than a 30 year fixed at six or seven percent.
Some caveats: Refinancing only makes sense if you have at least ten years left on your mortgage and you intend to stay in your house for a long time. Also, it should be remembered that mortgage rates are not the only thing to consider when shopping for a refinance loan. There are all sorts of questions to ask the loan officers.
Here’s a link to a worksheet that can help you get answers, and decide if it’s a good time to refinance.