Housing started heating up this fall, as recent Federal Reserve actions brought mortgage rates down to new all-time lows. It’s possible for homeowners to refinance and save more than ever now.
Over the past year rates have fallen more than half a percentage point on 30-year home loans, reports mortgage investment firm Freddie Mac. That can translate into substantial savings every month for owners who act soon. Several other factors also have emerged this year which are helping homeowners to save money by refinancing –
* Rising home prices are making it easier for owners to obtain a new loan. Having positive equity is a plus when you’re refinancing.
* Revised loan programs are helping owners who have been affected by falling house prices to refinance on better terms. Many owners can refi even if their home’s current value is less than their mortgage balance.
* Lower rates on all mortgage types let owners refinance into a program which fits their current financial situation.
Someone who purchased with a 30-year loan may benefit by moving into a 15-year mortgage now. They’ll pay off their home loan faster, and can look forward to a debt-free lifestyle.
Homeowners who refinanced within the past year often find they can boost their monthly savings by refinancing again. But it’s important to act quickly, since no one knows how long today’s favorable rates will remain available.