Mortgage Refinance Rates
Mortgage refinance rates in the US have declined over the recent weeks, remaining at a 16-month low as more affordable borrowing costs fuel an increase in refinancing. Homeowners are rushing to cut their monthly payments as rates hover at the lowest levels since June 2013. Mortgage refinance applications jumped 23 percent in the week ended Oct. 17 to an 11-month high, according to the Mortgage Bankers Association. The refinance share rose to 65 percent of home-loan applications from 59 percent. Rates are at the lowest level since June 2013, and homeowners are rushing to cut their monthly payment amounts.
The home mortgage refinance is made to allow a borrower to acquire a different, and even better interest term and rate. The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate. Borrowers with less than perfect, or even bad credit, or too much debt, refinancing can be risky.
In any economic environment, it can be difficult to make the payments on a home mortgage. Factoring in the possible high interest rates and an unstable economy, making mortgage payments may become tougher than you have ever expected. Should you find yourself in this situation, it might be time to consider refinancing. The danger in refinancing lies in ignorance. Without the right knowledge it can actually hurt you to refinance, increasing your interest rate rather than lowering it. Do the smart thing and consult a professional, knowledgeable mortgage broker to get you in the right direction. Don’t wait, there is no better time to refinance than now!
For further information regarding mortgage refinance rates, contact the specialists at HML Investments today.