The 30 year fixed mortgage interest rates dropped to around 4.375% for qualifying borrowers. Rates may not have been this low in over 40 years. It is currently about ½% below the last bottom seen in U.S. around 2003. Combined with today’s lower home prices, these lower rates and monthly payments are making it an even better time to consider buying a home for many consumers.
If you choose to stay in your current home, it may make sense for you to consider refinancing your current mortgage. A homeowner with a current rate of 6.0% on a 30 year fixed mortgage could save approximately $200 a month by refinancing to 4.375%
Also this week, the Federal Reserve cut short term interest rates by ¾’s of a percent. What does that mean to you? If you have a Home Equity Line of Credit (HELOC); that means your interest rate could drop ¾’s of a percent for next month’s payment billing.
Bottom line, this may be a great time to consider buying or refinancing a home with mortgages rates this low!
