Time to Refinance again

While the stock market and oil prices have been dropping like a rock over the last few weeks the positive effect of this is that interest rates are once again at all-time lows.  As investors around the world are selling stocks and seeking safe havens to park their money they are buying US Treasuries which are considered the safest investment in the world. 

However, this has caused the yield on the 10-year Treasury Note to fall below .5% which is an all-time low.  The 10 Year Note was at 3.24% in 2018 and 2.91% in 2019 so this is a significant drop from an already low level.  Why is this important to homeowners or potential home purchasers?  It’s important because mortgage rates are closely tied to the 10 Year Note.  So as it has come down so have mortgage rates as well.  We have seen mortgage rates at 4.5-5% as recently as the fall of 2018. 

We are now seeing 3% or better for a 30-year mortgage depending on the day and the borrower’’ creditworthiness.  Many of our clients are now refinancing to 30, 25, 20 and 15-year mortgage to lower their payment or cut off years on their loan or both and are saving thousands of dollars.  Even if your rate is 3.5-4% it can make sense for you.to refinance.  If you are thinking about pulling out some equity to make renovations to your home or pay off high-interest credit card debt, now is the time to do it.   

If you have Private Mortgage Insurance (PMI) because you did not have enough equity 2-3 years ago you may now have enough equity to refinance and remove the PMI at a lower rate.   

Our law firm has great contacts in the mortgage industry that can discuss your options with you to see if it makes sense to refinance now.  If it does we can assist in closing the loan for you.  If you are interested please call us as soon as possible as you never know how long the rates will be this low.    

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