Anyone looking to get a 30 year fixed-rate mortgage or refinance for a 30 year fixed-rate mortgage may get an affordable mortgage rate of around 5%. Over the past few months mortgage rates have been at record lows as some people have seen rates as low as 4.75% or lower when they bought or refinance their home.
Homeowners that have refinanced for a 30 year fixed-rate mortgage had been able to, in many cases, get a lower mortgage rate and as a result of this lower rate their monthly mortgage payment dropped as well. People who’ve had trouble financially have been looking to refinance for lower rates, mainly for this reason.
Also, some homeowners have refinanced and got money back from their mortgage equity and as a result have used this money to pay down their mortgage principal, which will make their mortgage more affordable down the road.
New homebuyers have had the opportunity to get affordable homes, a low mortgage rate, and for many they have been able to use the first-time home buyer tax credit. Many have found that buying a home is more affordable than renting, when monthly costs are compared.
However, anyone looking to refinance their home to a 30 year fixed-rate mortgage or anyone looking to buy a home with a 30 year fixed mortgage will need to look at their financial situation and be sure they are able to afford owning or refinancing a home before they proceed.