Over the past 10 days, we’ve seen mortgage rates drop well over 1%. Right now, conventional 30 year fixed rate mortgages are sitting at 5%, in some cases 4.875%. These rates are an unprecedented all time low. As a general rule of thumb, a 1% drop in rate can reduce your payment over $150 per month. Now is a great time to assess your current situation whether you have a higher fixed rate, an adjustable rate mortgage, or would like to tap into a portion of your equity.
1. Based on current market conditions, do I have at least 5% equity in my home?
2. Has the income I used to qualify for my home stayed the same or increased?
3. Is my current interest rate at or above 5.75%?
If you answer yes to all three of these questions, I would suggest exploring the possibility of refinancing.
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