Timing the Lowest Mortgage Rates for Refinancing

With record low mortgage rates, millions of homeowners have an opportunity to reduce the interest on their loan and get better terms so they can pay off their mortgage quicker.  According to Fox News’ mortgage expert Chip Cummings, “Now is the time to refinance your mortgage because money is cheap.”  Many of homeowners have been targeting interest rates in the 4 to 5% range to make it worth their while to refinance.  Since the closing costs typically range from $2,000 to $3,000 on a home refinance, borrowers have to make sure that the refinance rate lowers their payment enough to justify refinancing.  Conventional, FHA and VA refinancing application volumes have been surging as the rates have dipped to the lowest level since Freddie Mac began recording mortgage rates in 1971.

Best Time for Mortgage Refinancing with Record Low Rates

Jerry Mlinar an Illinois mortgage lender with Woodfield Planning recommends that borrowers who currently have an adjustable rate on their mortgage act fast.  Mlinar said, “Talk to a mortgage professional about which refinance loan best suits your criteria and qualifications is the first step.  Millions of homeowners lost their home equity when the property values plummeted a few years ago and many borrowers are no longer eligible for traditional refinancing.  Mlinar points out that borrower should only be considering mortgage refinance options that you actually qualify for.