By Manuel Tovar, October 18 – Hispanic Solutions Group
Today we inform you that the 30-year mortgage rate falls back to 3% as the pandemic recovers
As usual in our quest to better communicate and guide consumers, today we inform you that mortgage rates have dropped incredibly again this week, a move that is attracting homeowners to consider refinancing. The average rate on a 30-year loan fell to 3 percent this week, 4 basis points less than last week, according to Bankrate’s latest survey of lenders.
The drop in rates comes as coronavirus infections accelerate. Rates are just above their all-time low of 2.93 percent set in January. The 15-year fixed-rate mortgage fell to 2.28 percent. Bankrate averages include origin and discount points.
While the smartest homeowners refinance, and some have even done it twice, millions more still have to take advantage of rates that once seemed unthinkably low. Mortgage data firm Black Knight says 15 million US homeowners are in a position to save by refinancing.
If you have a 30-year loan for $ 300,000 at 4 percent, your monthly payment is $ 1,432. Refinancing at 3 percent would lower the monthly payment to $ 1,265, a savings of $ 167 a month or $ 2,004 a year.
To be on the safe side, here’s a word of caution: closing costs and fees mean that refinancing can cost you thousands of dollars. However, if you can reduce your rate significantly, you will quickly recoup your closing costs and fees.
How to refinance your mortgage?
Step 1: Set a Clear Goal
Have a compelling reason to refinance. It could be cutting your monthly payment, shortening your loan term, or withdrawing principal for home repairs or to pay off higher-interest debt. You may also want to refinance
Step 2: Check your credit score
You will need to qualify for a refinance just as you needed to to get your original home loan approved. The higher your credit score, the better refinance rates lenders will offer you and the better your chances of getting your loan approved by underwriters.
Step 3: Determine How Much Equity Your Home Has
Your home equity is the value of your home in excess of what you owe to your mortgage lender. To find that number, check your mortgage statement to see your current balance. Then, check out online home search sites or ask a real estate agent to do an analysis to find your current estimated value of your home. Your home equity is the difference between the two. For example, if you owe $ 250,000 on your home and it is worth $ 325,000, your home’s equity is $ 75,000.
Step 4: Find Multiple Mortgage Lenders
Getting quotes from multiple mortgage lenders can save you thousands of dollars. Once you’ve chosen a lender, figure out when it’s best to lock in your rate so you don’t have to worry about rates going up before your loan closes.
Step 5: You have to put all your papers in order.
Finally, gather all your recent pay stubs, federal tax returns, bank statements, and whatever else your mortgage lender requests. Your lender will also analyze your credit and equity, so disclose your assets and liabilities in advance.And don’t forget to compare refinance rates in your area.
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