Purpose
Refinance Purchase Home Equity

Loan Type
Fixed ARM Interest Only FHA

Amount

State
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Display Mortgage Rates &
Refinance Rates in your State

Mortgage Rates Are Low-Should I Refinance?

By Eric Goodwill

Now that mortgage rates are at historically low levels, should you be refinancing your mortgage? Everyone’s situation is different and the answer will depend on several factors.

Your Current Mortgage Rate

There are some costs involved with refinancing your mortgage, so you need to be able to save money on your monthly payments in order for refinancing to make financial sense. Most experts will tell that you need to obtain a new loan with mortgage rates that are at least a half of one percent lower than you are currently paying to save you any money, once you factor in the costs of refinancing.

Type Of Current Mortgage Loan

When you refinance from an adjustable rate mortgage into a fixed rate mortgage, you will usually pay slightly higher mortgage rates on the fixed rate loan. But, you will lock in the fixed interest rate for the life of the loan. With the current low mortgage rates available on a fixed rate mortgage, this may the best time to switch from an adjustable rate mortgage into a fixed rate mortgage, and eliminate the risk of your interest rate increasing in the future.

Length Of Time You Will Remain In Your Home

Since there are usually some fees involved with refinancing a mortgage, it may not make sense to refinance if you plan on moving within a couple of years. The cost refinancing may be more than any savings you will reap from refinancing to a lower rate, unless the new interest rate is significantly lower than the rate you are now paying.

And The Answer Is…

For most people this may the opportunity of a lifetime to refinance and lock in low mortgage rates on a fixed rate loan on their home. Mortgage rates may never be this low for a long time. You should be able to save thousands of dollars over the life of your mortgage loan when you refinance at today’s low rates.

Related posts:

1. When Are Refinance Rates Not The Best Idea?
2. How Do I Decide Whether To Refinance a Fixed Rate Mortgage?
3. Does It Pay For Me To Refinance My House?
4. Are Refinance Rates Stable Right Now?
5. Does My Adjustable Rate Mortgage Still Make Sense?