Time to Refinance Your Home Loan?
U.S. home loan rates have fallen to their lowest levels in 50 years, which has led to a lot of people considering remortgaging or refinancing their loans.
Time to refinance your home loan?
Officials at Freddie Mac reported that the average thirty year fixed rate averaged 4.15%, the lowest it’s been in over 50 years.
Freddie Mac’s chief economist Frank Nothaft said:
“It’s not surprising, many homeowners took advantage of this low mortgage rate environment and have already refinanced their loans…In addition, an increasing share of refinancing borrowers chose to shorten their loan terms during Q2 , according to Freddie Mac’s Quarterly Product Transition Report.”
Freddie Mac’s report also states:
-The 15-year fixed rate averaged 3.36%, a drop from 3.5% last week and 3.9% 1 year ago.
- Adjustable rates also fell : The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.08% this week, a fall from 3.13% last week and 3.56% one year ago.
-The 1-year Treasury-indexed adjustable rate was 2.86% this week, compared with 2.89% last week and 3.53% this time last year.
So all in all a good time to try and refinance your home loan. Although with Bernanke vowing to keep interest at the same rate until 2013, there is particular rush, except of course that the sooner you get it done the more money you will save.