These are extraordinary times on many levels – including real estate-related activities and services. One of the more noteworthy scenarios playing out is the rise and fall of mortgage interest rates.
After some rough seas, where rates gyrated back and forth by more than a full percentage point, we are witnessing a steadier time with rates in in the mid to upper 3’s (around 3.625%, as of this writing, for a conventional 30-year loan). Some people applying for a mortgage are seeing rates slightly higher or lower depending on their own financial circumstance.
Meantime, many current mortgage holders are evaluating whether to seek a refinancing of their loan. This is when borrowers in good financial standing obtain an entirely new mortgage to replace the existing one for better terms and greater long-term savings.
At what interest rate should you consider a refinance? If your mortgage interest rate is more than one full percentage point above the current market rate, then consider contacting your loan servicer to better understand the costs related to changing terms.
Here are five tips to follow as you consider refinancing, courtesy realtor.com: