Homeowners are still refinancing to a 30-year fixed rate mortgage, despite a drop in the numbers of homeowners that are doing so. Over the last few months mortgage rates have been quite low and homeowners have rushed to refinance in order to get a lower rate, which typically brings a lower mortgage payment as well.
Interest rates on a 30-year fixed rate mortgage are staying around 5% at the present time so many homeowners still stand to benefit from refinancing, even at a rate that isn’t a record low, which some homeowners have seen. Also, homeowners with equity in their home got money back from refinancing and, those that were financially savvy, paid down their mortgage principal.
Also, homebuyers were looking to get a new home with a 30-year fixed rate mortgage in the hopes of getting a lower monthly payment. Homebuyers, as of late, have seen lower home prices and have had the opportunity to take advantage of the first-time homebuyer tax credit as well.
However, it has been cautioned that any homeowner looking to refinance or homebuyer looking to purchase a house should be sure they are on stable financial ground before proceeding with getting a 30-year fixed rate mortgage as they want to be sure it’s in their best interest.