Mortgage rates are at a big-time low. Therefore, if you haven’t refinanced your home, it’s the perfect time to do so. You could save yourself a whole lot of money in the long run by making that change right now.
Mortgage Rates Are At a Low
Current mortgage rates certainly aren’t the lowest that they have ever been. However, they’re definitely low. CNBC reports that the average 30-year fixed mortgage rate is now 3.73%. That’s lower than anytime in the past three years. With mortgage rates fluctuating dramatically even in the years before that, there’s a good chance that your own home mortgage is priced at a higher rate.
Haven’t Refinanced Your Home? You Might Be Losing $3200 Per Year.
The report indicates that on average, if you refinance your home to these low mortgage rates, you could save $266 per month. That adds up to nearly $3200 per year. Sure, you could do nothing and keep paying that interest to your mortgage loan. But why?
You could take that money and enjoy it. Better yet, you could take that money and make it work for you. Keep paying the same amount to your mortgage each month, but allow that extra money to go towards the principal. After all, you’re used to spending that money each month. If you refinance your home, then you owe less in interest. Paying the same amount you’ve been paying means that you’ll pay off your mortgage that much more quickly.
You’re Not Alone if You Haven’t Refinanced Your Home
According to that report, there are more than 8 million homeowners who haven’t refinanced to take advantage of these great rates. So, if you haven’t refinanced your home mortgage, then you’re certainly not alone. But just because millions of other people are wasting their money doesn’t mean that you should, too. Savvy home owners check regularly to see if refinancing your home makes financial sense. It’s something you should do periodically to make the most of your money.
In particularly, if you have an adjustable rate mortgage and you have not refinanced your home then you’re probably making a mistake. The security of a low fixed rate mortgage simply can’t be underestimated.
But I Just Got My Mortgage Last Year!
Many new homeowners mistakenly think that they have to wait for years before refinancing their home mortgage. That’s not the case at all. Sure, when rates are steady, there’s no reason to refinance. However, when rates change as much as they have lately, it’s worth it refinance whenever the rates are lowest.
If you just got your mortgage in the past year or two then you may not have even thought about refinancing yet. However, if you haven’t refinanced your home while the rates are lowest, then you might miss your best chance.
The report indicates that more than one third of borrowers who just got their home mortgage last year could benefit from refinancing now. That adds up to approximately 1.5 million people who could save money if they refinance their home. Are you one of those borrowers?
Read More:
- Beginner’s Guide in Refinancing Mortgage
- How to Buy a Second Home: Make Sure You’re Prepared
- Pros and Cons of Tiny Homes for Frugal Living
Kathryn Vercillo is a professional writer with more than a decade of experience writing about healthy living and personal finance. She lives in San Francisco, where she has learned to maximize frugal living tips in order to thrive as a freelancer in one of the nation’s most expensive cities. When she’s not writing, she’s exploring the city on foot with her rescue dog. Learn more about her at www.kathrynvercillo.com.
Kathryn also writes about saving money with coupons over at GroceryCouponGuide.com