With rates going down to as low as 3.7% on a 30-year fix rate, and most likely will stay there for a while. You can consider this as a perfect time to refinance and take advantage of the savings and consolidate your high-interest credit cards as well.
Student loans could be a great idea to include and refinance to a lower payment and pay it off sooner than later.
There is a surge of refinancing applications in the last 2 weeks.
The Fed rate cuts last July 31st and the stock market plunging down in the fears of tariffs will be imposed on Sept. 1.
According to CNBC, Millennials are driving the housing the refinance market. And one of the main reasons is to consolidate student debts and take advantage of the lower rate.
The rates are not as low as in 2011 but the saving is significant for individuals that bought in the last 5 years.
Could you really save
An average of .75% rate cut could save you $150/month on a $300,000 loan. That’s an $1800 savings for a year.
At the same time, It’s a no brainer to refinance while consolidating all your debts.
Given other factors and your credit score, this will be great savings for you.
Most of the time, the rule of thumb is .75% reduction will yield a reduction in monthly payments.
Check your credit score
If you are in a good financial standing and you don’t have any late payments on your bills or credit cards. This is the best time to check your credit report.
Also, consider if you only have 15 to 12 years left on the loan, it may not benefit you to start over again. You are better off just to make extra small payments a month, placing more on the principal, thus shortening the life of the loan.
Call your local lender and see what rates they have.
Typical fees and costs associated with the refinance market could be around $5000. This will be added to your mortgage loan.
Use the guide to know what kind of documents you need to prepare, so you could fast track the refinancing process sooner.
Lenders would need these documents to give you a more accurate estimate of the rate upon qualification.
With the trade wars and the Fed being pressured to cut more rates, low mortgage rates may stay, giving you a perfect time to refinance your mortgage loan and have the extra money in your pocket.
