Have you been thinking about refinancing your home but been reluctant to pull the proverbial trigger? Sadly, you’re not alone. Popular real estate website Zillow recently conducted a survey revealing that only 22% of eligible homeowners refinanced between April 2020 and April 2021. Never mind that mortgage rates were below 3% for most of that year. And that almost half of the refinancers saw their monthly mortgage drop $300 or more. For any number of reasons, many folks passed on the opportunity to refinance and save themselves a bundle of cash. But if there was ever a time to move forward on a refi, that time is now. Up next are two reasons to refinance today.
Interest rates just dropped again
Although interest rates have been at historically low levels for more than a year, they just plunged again. In fact, as of a few days ago, mortgage rates dropped to a five-month low. Average rates on 30-year home loans dipped below the 3% mark again last week. This, however, is unlikely to last. So, if you’ve been on the fence about refinancing, hop on over. Our mortgage advisers at Fairway of the Carolinas will be waiting on the other side to assist you.
Fannie Mae and Freddie Mac just scrapped a fee on mortgage refinances
In the last blog entry, we informed you about Fannie Mae and Freddie Mac – two important financial institutions that provide liquidity, stability and affordability to the mortgage market. Well, the Federal Housing Agency just announced Friday that Fannie and Freddie are eliminating a fee on mortgage refinances. This “50 basis-point” fee, imposed in August 2020, raised the interest rate on most conventional refi loans by roughly .125%. While this may not sound like much, it’s more than you might assume. For example, on a $300,000 loan, this fee would cost homeowners about $20 in monthly mortgage savings. But, now, the 50 basis-point fee is gone, making it a great time to refi.
Now that we’ve given you two compelling reasons to refinance, why not go ahead with it? The result will be potentially hundreds of dollars in monthly mortgage savings. Have questions about refinancing? That’s great! We’re here to help answer them and more. Contact us today and let us know how we can help. We look forward to speaking with you soon.