Now is the Time to Refinance Your Mortgage

Now is the best time to refinance your home mortgage. Mortgage rates continue to hit record lows. The economy is showing signs of gradual recovery. Along with the job market. The government and some of the nation’s largest banks are setting up programs to help homeowners refinance their mortgages.

Low interest rates, government programs, and improving economic factors should lead to a large number of mortgages being refinanced. However, even homeowners that have excellent credit and mortgage payment history are having difficulty locking in a deal.

The main reasons why locking in that deal is such a problem are the low appraisal values of their homes and the tighter lending standards put in place by lenders after the financial crisis.

For homeowners that can face the wait and overcome these hurdles, the reward can be very substantial. Interest rates are at historic lows. According to the data released by Freddie Mac in their weekly survey of mortgage rates, for the week ending May 24, the average on the 30-year fixed-rate was 3.78%. That rate is the lowest seen in 60 years.

With about 20.5 million borrowers across the nation that have a mortgage rate above 5%, if they were to be able to refinance anywhere near the current averages, they would save hundreds of dollars every month. According to Corelogic there are also another 12.9 million that have mortgages at rates between 4% and 5%.

Even borrowers that have refinanced with the last couple of years-while interest rates have continued to fall-should consider refinancing now. With the opportunities that are currently available, any homeowner that can lock in a deal that will recoup the costs and fees of closing within a period of 18 months should refinance. Home prices are starting to rise and rates will soon follow. Now is the time to refinance your mortgage.

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