US Sees Lowest Mortgage Interest Rates in 3 Years
August 8, 2019
By Jay Hurst, Co-Founder of Hurst Lending & Insurance
Even if you have a good rate on your current 30-year mortgage, every homeowner should be looking at their financial situation right now to see if a refinance of some type might improve their financial outlook. Current rates for a 15 year fixed rate mortgage are hovering around 3.0% (3.13 APR)*, and 30 year rates are around 3.625% (3.75% APR)*
The tables below, published yesterday by Mortgage News Daily, illustrate the unusual opportunity homeowners have right now to save money by refnancing a home. This is the best opportunity we’ve seen in 3 years to snag a low rate while refinancing to shorten your mortgage term or take cash out of your home’s equity with a cash-out refinance.
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With these low rates, you may find – as many of our clients have – that you can save thousands of dollars in the long term with one of these strategies:
1. Reduce Your Mortgage Term
Moving from a 30 year to a 15 year mortgage at rates as low as 3.0% can offer significant benefits. If you can afford a higher monthly payment, you will:
- Pay off your mortgage faster
- Pay tens of thousands of dollars less interest over the life of your loan – not only is your rate lower, you will pay interest over a much shorter period.
- Build equity faster
2. Take Cash Out of Your Home Equity
If your home has appreciated in value, or if you have been paying your mortgage for a substantial period of time, you have probably built some equity. With mortgage rates at a low point, you can convert some of that equity into cash that you can use to:
- Update, renovate, or repair your home
- Make a down-payment on a rental property or second home
- Pay for college tuition
- Pay off higher-rate debt
- Make a purchase or investment you’ve been dreaming of
You can learn more about the details of cash out refinancing at our dedicated cash-out refinancing website.
In most cases, you can refi with little or no cash out of pocket. We even offer loans with no closing costs.
If you are interested in learning more, we’d be happy to put together a worksheet for you that will show you exactly what your costs would be and how much you can save. There is no cost and no obligation.