Current Refinance Rates

There is no question about it, no matter what type of loan you want, interest rates today are very low. Some are approaching historical lows, including mortgage and refinancing rates. Current refinance rates for home loans and home equity products are at or below 5% nationally, which has been encouraging to new home buyers and those who want to get rid of old high interest mortgages.

Buyers who are in the category of good or excellent with regard to their credit scores will be able to take advantage of the very lowest interest rate financial products. Others will pay higher interest rates and extra fees for their lower credit scores.

Since credit scores can be improved, even buyers with low scores are able to work over a few months to bring their credit scores up. For most, the score may improve enough to obtain the better financial interest rates. Home equity mortgages, home equity lines of credit (HELOC) and other loan products are very inviting. Current refinance rates say “yes” to many homeowners who want or need to borrow money.

Refinancing a mortgage is a fabulous idea if you were stuck with a high interest rate from the early 1980s, when rates went up to 16.63% in 1981. Imagine the savings if you traded that high interest loan for a new low interest loan at about 5% interest! Homeowners can do a regular mortgage to refinance the old one, or they can use the equity they have built up in their home to take out a home equity mortgage low interest rate loan.

The national average for mortgage refinance rates is now around 5% or less, according to the type of loan involved. Shorter term loans and very short term ARMs (adjustable rate mortgages) have rates that can dip below 4%. The only thing to remember about ARMs is that when the federal prime rate increases, so will that loan interest rate and corresponding monthly payment. For some, any increase in monthly payments is a disaster that could lead to foreclosure action and losing their home.

There are times in history when financial opportunities are just knocking down doors. It would be a shame to miss out on these historically low rates for refinancing and mortgages. Buyers and homeowners should seriously think about acting now to do a refinance when rates are hollering “yes” loudly.

Any financial product that uses a home or other property as collateral for that large loan endangers ownership of the property should the owner somehow become unable to make timely payments in the future. No one wants to lose their home, but no one can predict the future either. Right now loan interest rates are very advantageous to borrowers. Rates have gone up about one half of a percent over the past year; it is fairly certain they will continue that trend. No one knows if they will again hit highs like 16.62%, but getting a fixed loan at 5% goes a long way towards creating homeowner peace of mind.