Many experts are saying that this is a good time to refinance mortgages right now. Gershman Mortgage points out this is because interest rates remain low and mortgage insurance has gone down, refinancing now might make a lot of sense for homeowners looking to save money.
While it is true that interest rates have been low for some time now, there’s no way to really tell when that will change. The Fed has not indicated that they plan to do anything to raise the rates but they are no wholly dependent on U.S. institutions and can be affected by events well outside our borders. The Chinese recent stock market readjustment has sent their currency down, which has already had some impact on the mortgage interest rates.
The Federal Housing Administration (FHA) lowered the insurance premium rate on FHA backed lows. This could save new homebuyers an average of $900 per year. That would be the savings offered to existing homeowners who chose to refinance.
Homeowners should look carefully at their options and see if this would be a good time to take advantage of the lower rates. The savings that come with refinancing can be significant over the life of a loan.