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Mortgages: Is it a good time to refinance right now?

On Behalf of | Aug 26, 2020 | Mortgages |

Florida residents may be aware that interest rates on home loans have been sliding down, which is why people across the country were applying for mortgages at three, four times the levels they were in last spring. With so much financial uncertainty, it make sense that homeowners would like to save money every month and use that money towards something else. According to some estimates, 18 million homeowners could be sitting on mortgages that could be refinanced at curtain rates and save more than $250 every month.

According to investment sage Warren Buffet, now is the time to refinance a mortgage. The rates on 30-year mortgage have been record low in 2020 and are averaging about 2.91%, close to an all-time low of 2.88% in early August.

These moves are the result of the Federal Reserve’s attempt to help the economy by extremely slashing rates. Consequently, 30-year mortgages are popping up at rates under 2% at some places as well. Buffet calls the 30-year mortgage one of the best instruments around, since it can be refinanced when a lower rate appears. For example, if someone’s mortgage right now at 3.75% or higher, with a exceptional or great credit score, they may be in the position to save a lot by refinancing their mortgage.

Making mortgage payments may be difficult for people right now, given the prevalent economic and unemployment uncertainty. Those who can manage it might want to look into ways to refinance their mortgage, but it is important to understand the implications of taking that step. It might be helpful to speak to an experienced attorney for guidance on how to take full advantage of the lower interest rates.