Should I Refinance Now?

With the talk of plummeting interest rates saturating the news and internet, it is likely that you continually ask yourself – should I refinance now?

Most consumers are afraid to make the decision to lock in an interest rate for fear that they will miss the next interest rate dive. With 30-year fixed rates below 4%, even those with credit scores in the 700’s are seeing record low interest rate offers. A 15-year fixed rate is around 2.75%, which is down almost one half percentage point from last year at this time.

So, should you refinance? Expert’s state that now is the time. Though there is a possibility that the interest rates will continue to fall, they must eventually bottom out. There is no reason why a consumer cannot refinance a second time.  Therefore, if you do find refinance and then find the interest rates go even lower, many programs will allow you to refinance again to lock in the best rate. Freddie Mac states that a savings of at least one percentage point is savings enough to consider refinancing.

Though low interest rates are typically a sign of a struggling economy, a lackluster real estate market, and high unemployment rates, Freddie Mac predicts that low interest rate trend is one that is helpful to the market overall.  However, the low interest rates are bringing more potential buyers to the closing table making low interest rates the silver lining in an otherwise bleak housing market.

Therefore, as record low interest rates continue, expert’s state that now may be the time to jump on board the refinance wagon and secure a record low interest rate on your home loan.