Save Big with a Refi This Spring
Interest Rates the Lowest in Over a Year
Even if you have a good rate on your current 30-year mortgage, this month’s low rates might mean that a refinance could save you serious money. Current rates for a 15 year fixed rate mortgage are hovering around 3.5% (3.63 APR)*, and 30 year rates are around 4.00% (4.13% APR)* With these low rates, it may make sense to:
1. Reduce Your Mortgage Term
Moving from a 30 year to a 15 year mortgage at rates as low as 3.5% 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.
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.