Mortgage rates on 30 year fixed-rate mortgage are staying around 5%, which is a very affordable rate for many homeowners who are looking to refinance. Some homeowners have seen record low interest rates over the past few months and for many, they may still be able to obtain these low rates.
However, a mortgage interest-rate around 5% can still be quite low for many who want to refinance their home. In the past people would refinance in order to take advantage of equity in their home, and while this is still practiced today, many homeowners refinance in order to get a lower mortgage rate, as well as, lower monthly mortgage payments.
Due to financial and economic strains that many people have been going through over the past few months, a lower monthly mortgage payment is going to benefit anyone who may have trouble making financial ends meet. Also, homeowners that are getting money back from the equity in their home when they refinance are using this money to pay on their principal amount, which is going to benefit them later in the life of their home loan.
Homeowners should take note that refinancing is not something that is going to be beneficial for everyone. There are certain costs that come with refinancing and a low interest rate is not guaranteed but is dependent upon a homeowner’s credit score. Homeowners who want to refinance their home for a lower mortgage rate may want to consider looking over their personal financial situation first and making sure that they are able to financially handle the costs that come with refinancing their home loan to a 30 year fixed-rate mortgage.