Lowest Refinance Rates

It seems as though there are more people applying for home refinance loans today than ever before. With home prices having run up to record highs in 2006, most homeowners felt real estate would continue its upward trend forever. The logical thinking was that the population was increasing and land was decreasing; therefore, home values would have to rise. Unfortunately, this was not the case. Just like the real estate bubble Japan had in the late 1980s, and the tech bubble the United States had in the late 1990s, the bubble popped. Home values came crashing down to realistic levels, which in turn decreased homeowners’ wealth. This is the primary reason so many people have been looking to refinance their home. Whether that’s the reason or not, if you’re looking to refinance, it’s important to find the lowest refinance rates available.

Before we get to national and lowest available refinancing rates, let’s first cover the basics. A second loan on your home will have lower rates than your first, which will help you pay off the first loan. It can also assist you with many other financial burdens, such as paying off credit card debts with much higher interest rates, paying unexpected medical bills, paying college tuition for a child, paying for home improvements, or to simply consolidate expenses. There are many online lenders offering free quotes, so it will be easy to comparison shop and find the lowest refinance rates. Another bonus is that lenders will compete for your business opposed to you competing for theirs.

As of May 8, 2010, the national 15-year fixed finance rate was 4.29%. The 30-year fixed finance rate was 4.84%. And the 30-year fixed jumbo refinance rate was 5.45%. That’s important information, but it’s not going to let you know what you have to pay for a refinanced loan based on your specific situation.

Let’s use ‘Tom’ as an example. He is trying to find the lowest refinance rates in Charlotte, North Carolina. He has good credit and owns a single-family home. He has not had any late mortgage payments within the last year and his estimated home value is between $195,000 and $200,000. His first mortgage has a balance of $125,000 to $130,000. The interest rate on his first mortgage is 5.25%. There is no existing second mortgage and he wishes to borrow $20,000 to $25,000. His gross annual income is $30,000 to $45,000 and he’s able to verify it. He has no bankruptcies or foreclosures in the past 3 years. And he has no history with the military. Based on the information above, the following are a few examples of the lowest refinance rates being offered to Tom.

QuickenLoans

30-year fixed: 4.625% rate and 4.889% APR. Monthly payment = $656.
15-year fixed: 4.125% rate and 4.619 APR. Monthly payment = $951.
20-year fixed: 4.375% rate and 4.673% APR. Monthly payment = $798.

Bank of America

30-year fixed: 4.875% rate and 5.140% APR. Monthly payment = $675.
15-year fixed: 4.500% rate and 4.666% APR. Monthly payment = $975.
20-year fixed: 4.875% rate and 4.972% APR. Monthly payment = $675.

AimLoan.com

30-year fixed: 4.750% rate and 4.887% APR. Monthly payment = $665.
15-year fixed: 4.125% rate and 4.359 APR. Monthly payment = $951.
20-year fixed: 4.375% rate and 4.560 APR. Monthly payment = 798.

As you can see, QuickenLoans offers the lowest refinance rates on a 30-year fixed. They can also process loans in as fast as two weeks. AimLoan.com offers the lowest refinance rates on a 15-year fixed and 20-year fixed. Bank of America has slightly higher rates, but you’re paying for the name, which puts many people at ease.