The 30-year fixed rate mortgage is still low, when it comes to the mortgage rate, as many homeowners that are refinancing are getting a rate around 5%. Homeowners that are refinancing to this lower rate are doing so, typically, in the hopes of getting a lower mortgage payment.
Over the past few months there have been record low mortgage rates available as many people were able to lock in an interest rate of around 4.75% or lower. Mortgage rates are still around the 5% range and for some homeowners lower, so there may be benefits in refinancing.
Some homeowners are getting money back from low interest refinancing, which they can use to pay on their mortgage principal. However, the main motivation for many homeowners has been simply to get a lower monthly mortgage payment.
Homeowners that are looking into refinancing for a lower mortgage rate are being advised to make sure they are in the financial position to do so. Refinancing may not be in the best interest of all homeowners, so those considering refinancing will have to do their homework before proceeding.