With mortgage rates on a 3-year bender, you may have already refinanced your original home loan. Maybe you’ve done it twice, or even six times. Yes, six! But if you haven’t refinanced in the past 12 months, you’re leaving savings on the table. With mortgage rates down more than three-quarters of a percent, mortgage payments at today’s low rates are downright cheap as compared to one year ago.
Whether your mortgage is conventional, FHA, VA, USDA or jumbo, it’s time to look at rates.
30-Year Mortgage Rates Below 3.75%
It’s been a 4-year Refi Boom. Since 2008, the combination of aggressive Federal Reserve policy plus a weak economy have combined to push U.S. mortgage rates to levels bordering on insane.Today, mortgage applicants willing to pay discount points and closing costs can get 30-year fixed rate mortgages in the mid-3 percent range; and 15-year fixed rate mortgages in the 2s. Even jumbo mortgages are rock-bottom,As a point of comparison, when the Refi Boom started in August 2008, 15-year fixed rate mortgages were more than double where they are today. 30-year fixed rate loans were similarly expensive, in relative terms.Heck, even as compared to last year, today’s mortgage rates look cheap.
Save 10% On Your Mortgage — Instantly
Falling mortgage rates mean falling mortgage payments. For homeowners quick enough to strike while the iron’s hot, the monthly savings can be huge — especially for households using the HARP refinance program who’ve been previously unable to refinance.Today, the national average 30-year fixed rate mortgage rate is 3.67% for homeowners willing to pay closing costs and discount points. One year ago, the rate was 4.55%. That’s an 88 basis point difference in just 12 months — a huge difference.As a real-life example, if you refinanced a mortgage from June 2011 into today’s mortgage rates, no matter your loan size, you’d save an instant 10% on your monthly mortgage payment.· June 2011 : $509.66 principal + interest for every $100,000 borrowed· June 2012 : $458.59 principal + interest for every $100,000 borrowedThat’s $51.07 monthly savings for every $100,000 borrowed. On a real-life mortgage, a homeowner in Orange County, California, borrowing at the local conforming limit of $625,500 would recognize savings of $319 per month just for doing a refinance — or $3,833 per year.The “break-even point” on a mortgage like that comes quickly — even after accounting for discount points and closing costs.Mortgage rates have never been this low in history.
Discover Your Savings Via Refinance
Mortgage rates have dropped for 4 years but there’s reasons to believe they’ve neared a bottom. First, rates are nearing a point where, given their inherent risk, they become unattractive to Wall Street investors.Plus, with Basel III rolling out and mortgage turn times rising, lenders have reason to inflate their respective pricing. Rates look good today, though, and today marks a good time to lock.You have to see today’s mortgage rates to believe them.