WARREN, Ohio (WYTV) – When you’re buying a home, price matters, which includes the cost of financing. Mortgage rates are making your decision easy right now.
Mortgage refinance applications are up 20% across the nation. Mark Senkowitz with 717 Credit Union says they’ve received a record number of refinancing applications. Mortgage rates have been trending down for close to a year.
“We haven’t seen these types of rates in many, many years,” said Mark Senkowitz. “Usually, if you could save yourself 1% or 2% on your interest, it’s well worth your while to take a look at it.”
That’s a good rule of thumb for starting to consider a refinance. There are some hidden costs too, which should be a part of your decision making.
“For example, if it costs you a couple of thousand dollars to refinance, but it’s saving you $100 a month, you are going to recoup those costs in 20 months,’ Senkowitz said.
You would also own your home sooner with a shorter-term loan. It could also free up some cash flow. Locking in a lower rate right now can help a family stabilize what their monthly payment is going to be on their house for a long time.
“We encourage people to at least take a look into it. Simply because we may not see these rates again in our lifetime,” Senkowitz said.
The same rates apply to home buyers. If you just bought a home within the last year or two, you probably got a pretty good rate already.