On Monday, July 9, the Associated Press reported that fixed mortgage rates have fallen to an all-time low. This is great news for homebuyers in the U.S.; suggesting increased confidence and better deals than ever before available. Whether you’re looking to take on a mortgage or whether you’re suffering under mortgage debt, this news should be good news for you. Here’s why…
Mortgage Rates Falling
If you’re a homeowner – and you intend to stay in your home for at least two or three more years – now is a great time to consider refinancing. 30-year fixed rate mortgages are down to 3.62 percent, and 15-year fixed rate mortgages are down to 2.89 percent.
If you refinance now, you can take advantage of these incredibly low rates. However, know that there will be a cost in refinancing. Most financial experts agree that it typically takes a few years in order for mortgagors to start seeing a payoff from refinancing. Your mortgage debt can become more manageable with a lower interest mortgage!
If you’re a would-be homeowner, then today’s market offers some great alternatives. While 15-year mortgage rates sound appealing, many buyers today who could pay off a mortgage in 15 years are choosing 30-year mortgages, but then paying them off twice as quickly. This approach allows flexibility should your financial situation change and still saves you a lot of money.
It will be interesting to watch mortgage rates over the last few weeks of summer to see what kind of further adjustments are made to these already impressively low figures!