You may have heard that recently that 30-year fixed mortgage rates have hit a recent record low. For the first time in almost two years, mortgage rates have dropped down to almost 4%.
Because of the low rates now it might be a great time to consider refinancing your home loan. According to HousingWire, over 6 million people are now eligible for refinancing. Refinancing your home loan simply means that you get a new mortgage to replace the old one with lower rates. Based on the trends of the mortgage market and currently low mortgage rates, refinancing can reduce your mortgage payments to a much lower amount than they are now.
Although mortgage rates are low right now, that doesn’t necessarily mean that it’s a good time to buy a home. According to USA Today, the number of entry homes for first-time home buyers is still very low, and the uncertainty of the economy is making prospective buyers apprehensive about making the leap into home ownership.
So what does all this mean for you? It means that you should contact your lender to discuss whether it’s the right time for you to refinance your home loan, and find out how much money you could save while mortgage rates are still low.