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March 2, 2020

Interest Rates are at Historic Lows! Does a Refinance Make Sense?

You may have already heard, but interest rates are at historic lows lately, with 30 year mortgage rates currently in the low to mid 3%’s!  Check out this Facebook Live video with lender Matt Tenney & the details below for more info.

So why does this matter to you?

Well, if you’re a current home buyer these low rates could really help you out and I’d consider talking to your lender about locking in your rate.

If you’re already a homeowner these low rates could mean big savings if you want to consider a loan refinance.  I’d say if you have a current rate that’s in the upper 3% range or higher you should chat with your lender of choice to see if a loan refinance makes sense.  If you’re in the 4% – 5% range on your current mortgage a refinance is going to pretty much be a no-brainer.

So how much are we talking about in potential savings?  Let’s do a quick example.  (with the caveat that everyone’s financial situation is unique..this is just an example)

For a borrower with a $450k mortgage, which isn’t uncommon given home prices in Denver, if their current rate was 4.75% (which was a normal rate not long ago) and they refinanced their mortgage down to 3.375% they would save around $357 per month in interest.  That’s huge!  And because most of your payment on a mortgage is interest at the beginning of the loan the lower rate would save you over $30k in the first 5 years of the mortgage!  That is real money that you could put towards one of your other financial goals rather than wasting it on interest.  Again, this is just an example but the point is the savings can be big and it’s worth 30 minutes of your time to investigate it with a lender.

Homeowners that have private mortgage insurance should also consider checking in to see if a refinance makes sense right now.

Regardless of your current situation, if you have a mortgage it can’t hurt to make a quick call to a lender to see if a refinance makes sense.  My go-to lender in Stapleton is Matt Tenney with SWBC Mortgage and he can be reached at (303) 709-7501.  He’s provided great service and rates to our clients.

Hope you’ve found this info helpful and it saves you money!  If you need any assistance with buying or selling a home in Stapleton I’d love to help.

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