Considering a mortgage refi? Lower rates are just one factor when refinancing a home loan
Mortgage rates haven’t been this attractive in more than a year, good news for homeowners eager to refinance
LOS ANGELES (AP) — Mortgage rates haven’t been this attractive in more than a year, good news for homeowners eager to refinance.
Many homeowners have already jumped at the opportunity to lower their monthly payment, spurring a surge in mortgage refinancing applications.
And that was before the average rate on a 30-year mortgage fell this week to 6.2%, according to mortgage buyer Freddie Mac. As recently as May, the rate averaged 7.22%. It’s now at the lowest level in 19 months.
The rush to refinance makes sense, as even a slight drop in mortgage rates can translate into significant savings over the long run. For a home with the median U.S. listing price of $422,600, a buyer who makes a 20% down payment at this week's average mortgage rate would save $360 a month compared to what it would have cost to buy the same home in October, when the average rate hit a 23-year high of 7.79%.
