The Federal Reserve has cut rates almost to nothing, and mortgage rates are dropping to lows that haven’t been seen in 50 years! I thought I had a great rate when I got 5.875%, but now some buyers are getting rates as low as %5.17 on 30-year fixed mortgages. A year ago, 30-year fixed mortgage rates were around 6.14%.
So with rates this low, should you refinance? Good idea, if you can jump through the lender’s hoops. With the amount of refi’s TRIPLING this month, I bet lenders are staring to feel a bit overwhelmed. It is a great idea to take a look at your mortgage rate. To get the best rates, it is important that you have at least 20% equity in your home, that you have a credit score around 720 or higher and your debt ratio should be under 43%.
If you don’t know your debt ratio or credit score, call your lender and ask! You may be able to save by getting your rate lowered.