According to the Mortgage Bankers Association, the number of refinancing applications for the week ending August 23rd were up 167% compared to the same time last year. The average 30-year fixed rate is now at 3.55%. The numbers, both the average interest rate along with the number of applications, say it is a good time to look at your own situation and mortgage to determine if it is the right time for you to refinance.
Will rates linger at this new low or go even lower. There is no crystal ball telling us if rates have bottomed out or may go lower. Uncertainty in the political arena and indecision with trade wars is unsettling and remains unknown. Analyze the value that refinancing may hold for you by looking at the following:
• your credit score • your loan to home value ratio • how much will it cost to refinance • will refinancing create a solid benefit for you
A two-year payoff of any refinancing costs is considered good guideline to look at when weighing the idea of refinancing.