Mortgage rates are sitting near record lows — and that’s spurring a wave of refinancing activity as Americans look to take advantage of the savings a cheaper interest rate could bring.
Refinance loan volume jumped to the highest level since June 2013 last week, especially among jumbo mortgage borrowers, on the heels of lower mortgage rates, according to data from the Mortgage Bankers Association. The average interest rate for a 30-year fixed-rate mortgage fell to 3.45% two weeks ago, Freddie Mac reported, the lowest level since October 2016. Since then, it has risen slightly to 3.47%.
More than 11 million homeowners stand save to an average of $268 per month on their mortgages if they were to refinance at current rates, real-estate data firm Black Knight reported last week.
“Almost anybody should be checking if there’s an opportunity to refinance,” said Tendayi Kapfidze, chief economist at LendingTree “It doesn’t cost anything to talk to a lender and see what rate they might get you in this marketplace.”
But refinancing isn’t foolproof. Taking out a new home loan can cost you thousands of dollars in fees. And making the wrong choices can significantly reduce your potential savings. Here are five questions homeowners should ask themselves before taking the plunge with a mortgage refinance. Continue reading the article here
Source: Jacob Passy | Marketwatch | MSN.com
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