Refinancing Makes Sense For Over 7 Million Homeowners

Published on: Oct 10, 2019

Minneapolis, MN: With average home prices continuing to rise ABOVE the 2007 pre-crash average home value, and with 30-year fixed interest rates ending the week of October 10, 2019 at just 3.57% with 0.6% in points according to the weekly Freddie Mac mortgage rate survey, the combination has says refinancing makes sense for over 7 million homeowners.

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Refinancing is especially smart if a homeowner bought their home roughly one year ago, in the fall of 2018, where 30-year fixed rates hovered around the 4.75% range.  On a $300,000 loan, that interest rate difference is $296 per month, $3552 a year, $35,520 over 10-years, and a whopping $106,560 for the homeowner who would actually carry the loan for the full 30-year term.

With those sort of numbers, it is no wonder lenders across the country have seen an increased refinance volume, but it isn’t just lower interest rates that is sparking refinance activity. As home values continue to climb, many consumers are not only able to lower their interest rate, but also many now be below 80% loan-to-value, so they can drop monthly mortgage insurance (PMI), or even afford to shorten their loans term to maybe a 20-year loan, or even a 15-year loan without increasing their monthly payment much, if at all.

TIP: When refinancing, many people incorrectly think whoever they make their mortgage payment to today will be quicker, easier, and best refinance option. Sadly, that natural thought process is exactly why the current lender may not the best place to call.  Your best move is to contact your original mortgage broker who did your loan, or if you used a bank, credit union, or worse, your Real Estate Agents, or builders internal lender, to contact your local non-bank mortgage lender like us here at Cambria Mortgage.