Finding the right time to refinance a mortgage can be tricky, and some borrowers question whether refinancing a mortgage is even necessary at all. There are a lot of factors to consider when it comes to if (and when) you should refinance your mortgage, but the bottom line is, refinancing your mortgage is almost always a good decision when it saves you money in the long run. If you’re able to lower your interest rate by refinancing your current mortgage, this will certainly help you to save, especially if you have many years remaining on your loan. Data shows that refinancing your mortgage can save anywhere from $150 or $250 each month, or possibly more. Over the years, this equates to thousands in savings.
The initial drop in mortgage rates
Throughout the year 2020, life around the world changed as we know it, and one thing that reflected these changes was the significant drop in mortgage rates. In fact, rates had never been as low as they were throughout mid to late 2020, giving homebuyers the opportunity to obtain mortgages that came with more affordable monthly payments due to the lower interest rates. Many homeowners who already had mortgages with higher rates took advantage of these low rates by refinancing their mortgages.
Recognizing the right time to refinance
The right time to refinance will vary depending on your individual situation: if your credit score has drastically improved since you originally obtained your mortgage, for instance, you may now qualify for a more favorable rate. Refinancing can also give you the opportunity to take advantage of low-interest rates and by also obtaining a different type of mortgage. For example, you may want to refinance from an adjustable-rate mortgage to a fixed-rate mortgage when interest rates are low. Refinancing gives you the opportunity to lock in that low rate for the remainder of your loan. Experts recommend that whenever homeowners can reduce their mortgage rate by at least 0.5 percent, it’s almost always worth it to refinance.
If you missed the opportunity to refinance when interest rates took their first major dip, did you miss out for good?
It has been reported that mortgage rates are falling once again, with the current rate for a 30-year fixed-rate refinance being 2.874 percent as of November 2021. This is the lowest it has been since February 2021, when rates slowly started to climb back up.
It’s possible that these rates will continue on a downward trend before they rise yet again. However, if you already missed out on the opportunity to refinance the first time rates were this low, now is ideally the time to make your move. Waiting for rates to fall even more can be risky, and borrowers who don’t jump at this second-chance opportunity may not have a third chance to lock in these terrific rates.
Contact Filo Mortgage
If you had some hesitations the first time rates fell, you may have held back because you didn’t want to close on another loan. It could be as simple as not getting around to it, or not realizing just how much refinancing into these current rates can save you. Since rates have dropped yet again, you have another chance to seize an amazing opportunity, but don’t let it pass you by this time around. In addition to taking advantage of current rates for refinancing, it is also a great time to look into HELOC opportunities as well. Contact Filo Mortgage today to learn more about your options and to take the first step at locking in these historically low rates!