Refinancing your mortgage? Opportunity knocks

Refinancing your mortgage? Opportunity knocks

October 23, 2014: 10:15 AM ET

mortgage rate dip
Mortgage borrowers are getting the lowest rate mortgages of the year right now.
  • 74
    TOTAL SHARES
NEW YORK (CNNMoney)

Homeowners seeking to save some on mortgage payments can celebrate: The average rate for 15-year, fixed-rate mortgages, one of the most popular refinance products, has dipped to its lowest level since June 2013.

The 15-year fixed hit 3.08% according to Freddie Mac’s weekly survey, a tenth of a percentage point lower than last week and down sharply from 3.36% early in the month. Rates for 30-year loans dipped 0.05 percentage point to 3.92%.

“For borrowers hoping to pull the trigger on a refinance, this spate of the lowest mortgage rates since June 2013 is a pretty good opportunity,” said Keith Gumbinger of HSH.com, a mortgage information company.

With equity markets on a roller coaster and bad economic news roiling Europe, investors have fled to safe havens in bonds and mortgage-backed securities, depressing interest rates.

CitiMortgage chief: Housing market ‘stagnant’

It’s a boon for existing homeowners with mortgages a few years old. Borrowers can swap their old 30-year loans at, say 5% or more, for spanking new 15-year loans at the current rate.

Related: For $65 million, you can buy Miami’s most expensive home

Their payments may not fall — as a matter of fact, they’ll go up by about $340 a month for someone refinancing a mortgage balance of $200,000. But instead of making payments of $1,075 a month for 25 more years, they’ll pay $1,423 for 15 years and then be mortgage free. So, if they can afford the higher monthly bills, borrowers can save more than $137,000 in interest over the term of the loan.

The opportunity may not last long, though, according to Gumbinger. Markets are very volatile right now, so rates could change quickly.

“It pays to be prepared to jump and lock in a rate when they come along,” he said.

Advertisements

About PortlandHouseListings.com - Tom Ramsey, local Realtor

Local Portland Realtor with 10 years experience specializing in residential sales and investment property. Tom Ramsey Oregon Real Estate Principal Broker John L Scott Real Estate Phone: 503-481-0501 tomramsey1@gmail.com www.PortlandHouseListings.com
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s