The uncertainty of the world economy has policymakers somewhat on edge about interest rates that have remained stagnant and the slow economic growth. This uncertainty can however be a boon of sorts for homeowners that may be considering a mortgage refinance. The 30-year fixed rates have dipped to lows not seen since 2013.
Thirty year fixed rate mortgages are currently at 3.78% as of last week, a considerable drop from last month when a 30-year fixed rate was 4.05%. With rates dipping so low, it may be the best time to consider refinancing if you haven’t already done so within the past couple of years. If you are considering it, then there are a couple of things to remember.
Keep in mind that when refinancing there are several fees involved including bank fees, appraisal, title insurance, and more. Unless your rate will be lowered by at least a half percentage point and you’re planning on sticking around for a minimum of five more years, it may or may not be a good idea to refinance. Also remember that your home will need to have sufficient equity and your credit score will also need to be strong.
Just like you would with any major purchase, rates and fees can vary so always make sure you shop around with different lenders to find refinancing terms that are best for you.
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