The equity markets remain volatile, with capital seeking the safe haven of U.S. Treasuries. On Friday, the 10-year Treasury hit another historic low of .66%. Do not let the market chaos distract from the opportunity presenting itself; the ability to refinance your current mortgage at the lowest rates on record.
If you have been actively watching the equity and bond markets this week, the velocity of the moves would make even the most experienced investor left in a state of disbelief. While the markets remain extremely uncertain, there is one opportunity which is presenting itself that many can take advantage; the refinancing of your primary mortgage at historically low interest rates. Five years ago, in the Federal Reverse's "lower for longer" zero interest rate climate, our family purchased a house with a 30-year mortgage at 3.875%. At the time, I never thought mortgage rates would go substantially lower. Today, I am finding rates below 3%, at 2.875%, for a 15-year bi-weekly fixed mortgage with no points. In my situation, switching from a 30-year to a 15-year mortgage, at a 1% lower interest rate, increases monthly payments by a little over $1,000/mo. However, over the life of the loan, it saves over $245,000 in interest payments.
I've found in my research that many local banks have more attractive rates than the big banks at the moment. If you are a home owner with a mortgage, now is the time to run calculations on what refinancing can do for your personal financial situation. While I am not a mortgage broker, if you would like help with a financial analysis to see if refinancing makers sense for you situation, give the office a call and I will be happy to help.