Even if you have a good rate on your current 30-year mortgage, every homeowner should be looking at their financial situation right now to see if a refinance of some type might improve their financial outlook. Current rates for a 15 year fixed rate mortgage are hovering around 3.0% (3.13 APR)*, and 30 year rates are around 3.625% (3.75% APR)*
The tables below, published yesterday by Mortgage News Daily, illustrate the unusual opportunity homeowners have right now to save money by refnancing a home. This is the best opportunity we’ve seen in 3 years to snag a low rate while refinancing to shorten your mortgage term or take cash out of your home’s equity with a cash-out refinance.
With these low rates, you may find – as many of our clients have – that you can save thousands of dollars in the long term with one of these strategies:
1. Reduce Your Mortgage Term
Moving from a 30 year to a 15 year mortgage at rates as low as 3.0% can offer significant benefits. If you can afford a higher monthly payment, you will:
- Pay off your mortgage faster
- Pay tens of thousands of dollars less interest over the life of your loan – not only is your rate lower, you will pay interest over a much shorter period.
- Build equity faster
2. Take Cash Out of Your Home Equity
If your home has appreciated in value, or if you have been paying your mortgage for a substantial period of time, you have probably built some equity. With mortgage rates at a low point, you can convert some of that equity into cash that you can use to:
- Update, renovate, or repair your home
- Make a down-payment on a rental property or second home
- Pay for college tuition
- Pay off higher-rate debt
- Make a purchase or investment you’ve been dreaming of
You can learn more about the details of cash out refinancing at our dedicated cash-out refinancing website.