Mortgage Rates Near All Time Low: Is it Time to Consider Refinancing?

Published by Debra Taylor, CPA/PFS, CDFA, JD | July 18, 2016

Last week, mortgage rates fell to just above the all-time low and hit a new 2016 low, falling to 3.41%.  The record low in November 2012 was 3.3%, so we are not far off.  Even crazier – mortgage rates have been below 4 percent all year.  That’s 28 weeks!  (Source: Forbes)


Have the last six months of low mortgage rates had you wondering what to do with your mortgage loan?  Well, there’s one thing you should definitely not do – don’t take money out of your investments to pay down your mortgage.  It doesn’t make sense to do so when rates are so low.  In fact, a smart thing to consider is to refinance and lock in these low rates before they start heading north again.  Statistically, it’s only a matter of time before they do.

So what are homeowners doing?  Refinancing!  At the beginning of this month, applications for mortgage refinancing hit their highest level since January 2015, according to the Mortgage Bankers Association.  In fact, 61% of all loan applications earlier this month were submitted by current homeowners looking to lower their monthly payment.


What should you do if you’re a homeowner?  Consider taking advantage of the low rates to refinance.  You could reap a list of benefits more than just the low rates, including lower interest expenses, shorter repayment terms, and termination of mortgage insurance.  That’s a lot of savings, if you ask me!

And if you’re not a homeowner, maybe it’s time you consider taking that leap.  Many times, new home buyers don’t see the low rates as anything great because they think the rates are “normal.”  It may be a good time to have a new perspective and secure a new home with a low mortgage rate.

If you have any questions about refinancing your mortgage or buying a new home, please contact our office.  We are happy to help you any way we can.


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