Adjusted summary of articles by Matthew Couch and Jim Honeyman
Today’s mortgage rates continue to hover at all time record lows and this along with government incentives has made a refinance mortgage more financially attractive than any other time in history. Currently the interest rate on a 30 yr fixed mortgage is 5.12%.
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How do you know if now’s the time to pull the trigger on a refinance mortgage? If it’s more than 105 percent, you’d have to pay down your mortgage balance with cash to refinance. Because mortgage refinance rates come with closing costs, you don’t start saving money on that lower payment until you’ve repaid the upfront costs of the loan.
Also, when estimating closing costs, remember to account for any prepayment penalties on your existing mortgage. A mortgage loan officer will analyze your current mortgage and give you a cost benefit analysis so you are able to fully evaluate whether a refinance mortgage is a wise financial decision.
If you want to take advantage of the lowest mortgage rates in history and refinance your mortgage then it would behoove you to get several quotes from various lenders so you are able to compare lenders and go with the one you feel most comfortable with. The mortgage professionals will then help you further explore whether or not refinancing at today’s mortgage rates is a wise financial decision for your situation.
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