Helping you break down refinancing your home

Published: Updated:
Some financial tools to refinance a home. (Credit: MGN)
Some financial tools to refinance a home. (Credit: MGN)

Right now mortgage rates are even lower than they were during the recession, and there has been a huge surge in your neighbors refinancing.

Is that move right for you? We help you break that down:

Today’s mortgage rate is at three and a half percent, so if you have a $250,000 mortgage with an interest rate locked in at four and a half percent—if you were to refinance, you could save $160 per month.

Factor in the fees of about $4,000 and it will take you two years to break even.

Local lenders say low rates won’t last forever.

“It’s an interesting market right now, I mean obviously the coronavirus has put some fears in the economy of what could happen if this thing spreads, so you’re seeing a mess go off in the stock market recently and that usually means that there’s a flee to mortgage-backed securities which are kind of a safe haven,” said Senior mortgage banker at Hamilton Group Funding, Nathan Davis.

It’s also a win for those looking to buy a home for the first time. Davis says with lower interest rates—some potential buyers might be able to increase their price range while searching for their dream home.

You can look into these numbers yourself with the refinance calculator here.

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