Refinance rates continue to drop, now reaching their lowest rates since the fall of 2016.
These rates have lenders dealing with more refinance applications than they can handle, but this might not last long. Current rates that could save 11.3 million homeowners an average $268/month by refinancing today might start to rise at any moment.
While these good times last, anyone with an interest rate over 4% and more than a few years left on their loan could collect those savings.
The savings don’t stop there. You can hold on to even more of your hard-earned cash by doing one thing: paying your mortgage off faster. If you’re in a 30-year mortgage, switching to a 15-year while these rates are low could slash your monthly bill.
It’s a simple equation, but bankers don’t want you to solve it. After all, big banks make millions of dollars from interest. Avoiding it is not something that’s in their interest (pun intended) to do.
Have you ever noticed the interest accrued on your credit card, automobile or student loan statement and been shocked by the total you see? It happens to people every day! Take this account from a borrower writing on morningfinance.com: when he put pencil to paper, it turned out that 72% of the monthly payment on a 30-year mortgage was going straight to interest. By switching to a 15-year mortgage, he could save $159,447.09 in pure interest.
Step 2: Once you go through a few questions, you will have the opportunity to compare the quotes from multiple lenders!