By Manuel Tovar, October 11 – Hispanic Solutions Group
Today we will touch on this very important topic for consumers, such as mortgages, and we will give you some interesting suggestions that will help you make your financial decisions.
As is known, mortgage rates have changed course and refinancing activity is on the rise. That means homeowners who participated in the great refinery boom of 2020 are faced with a new decision:Should you refinance again? Yes or no, is the big question.
At mortgage lender Lower, that’s a common question from borrowers, says specialist Chelsea Wagner, regional vice president. In about half of the cases, the answer is YES, a second refinance could be a smart move.
“It all comes down to: Does it make sense?” Wagner says. “When rates fell in 2020, everyone rushed to refinance. It really depends on when you closed. “
As the coronavirus pandemic unfolded, rates plummeted to record lows. So after these historical lows, we could tell you that if you refinanced in May 2020, your rate could be 3.5 percent. If you waited until late 2020 or early 2021, your rate could be less than 3%.
The average rate on a 30-year fixed-rate refinance is 3.04 percent as of July 28 (from a few days ago) according to a national survey of lenders conducted by a company.
If your mortgage refinance matched the absolute market low, another refinance probably won’t make sense. On the other hand, if you refinanced early in the pandemic, another measure might make sense.
“Before refinancing twice in a year, it’s important to look closely at the numbers and make sure the consumer is making a smart financial decision,” said specialist Glenn Brunker, “A good rule of thumb is that the interest rate should improve. by 50 basis points to be advantageous to the borrower. “
Now, if your current mortgage is 3.5 percent, you’ll want to get a refinance rate of 3 percent or less.
Today’s high home values create opportunities for refinancing
Falling rates are just one variable in the refinance calculation. Another is the value of your home. Property prices are skyrocketing. If you bought with a low down payment last year, your home is likely worth more today.
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