Low mortgage rates are spurring homebuyers to consider refinancing. As of last week, the 30-year fixed-rate mortgage averaged 3.58%, according to Freddie Mac. This is the lowest mortgage rates have been since November 2016.
Who should consider a mortgage refinance right now?
The general rule of thumb is that refinancing is a good idea if you can reduce your current interest rate by at least 1% and you plan on staying in your home for another 5 years (give or take).
Keep in mind, there are other factors that can save you money beyond your interest rate. Reducing your term or pulling cash out to improve your home can be very beneficial.
People who bought a home or opened a mortgage in the last 1.5 years are more likely to have higher rates and, thus, are prime candidates for a refinance. And of course, borrowers who didn’t take advantage of the sub-4% mortgage rates available from 2014 to 2017 could also find it financially advantageous to consider refinancing now.
Louisiana USA’s Mortgage Center has over 100 years of combined experience. If your mortgage rate is at 4.5% or higher, contact the credit union to see how refinancing could benefit you.