Mortgage rates hit new lows. Today's refinance mortgage interest rate is 3.25% for 30 years fixed rate. Mortgage rates are the lowest in over 50 years according to Freddie
The process of paying off an existing loan, with the
proceeds from a new loan is known as a refinance. Borrowers often seek
to secure a
lower interest rate or to lower a monthly payment. The most common type
is of refinance is a rate and term. In addition to lowering rates and/or
associated payment, a mortgage refinance often reduces the term of a
allows a borrower to switch between a variable and fixed rate. A
consists of the same size loan, using the same property as collateral.
to determine if a refinance is beneficial, the savings in interest must
compared to the fees associated with the refinance process. An example
refinance fee is a prepayment fee.
FHA Refinance Rates
Mortgage rates today are low, encouraging home buyers and homeowners to look for new mortgages. Some mortgage borrowers are opting for a shorter mortgage term of 15 years because the monthly payments are more affordable because of today's low mortgage rate.
Not everyone can take advantage of the opportunity to refinance or qualify for a new home loan due to today’s tightened credit guidelines.
To be approved at the lowest mortgage rates, borrowers do not need to have the highest credit scores. In addition, the consumers need a reasonable debt-to-income ratio. Most lenders will qualify borrowers at a maximum of 50 percent of overall debt to household gross monthly income. Some borrowers with significant assets or income will be able to qualify even with slightly lower credit scores or higher debt.
Today’s historically low interest rates make now the perfect time to purchase a new home or refinance.
Low mortgage rates result in lower monthly payments which can save you thousands of dollars off the life of the loan.