Interest rates on home loans are around 5%, for the common 30 year fixed-rate mortgage, and many homeowners are choosing to refinance for this lower rate and home buyers are getting into the housing market in order to take advantage of these rates as well.
Lately, interest rates have been at record lows and many homeowners have been able to take advantage of these low rates by refinancing and thanks to lower home prices, the homebuyer tax credit, and these low rates, many homeowners have been able to get an affordable home. However, some people have used these low interest rates in a way that has helped them during a financially difficult time.
Some homeowners have been refinancing not just for the low interest rate, but for the low monthly mortgage payment on the 30 year fixed-rate mortgage that comes with a mortgage rate of around 5%. Obviously, your credit score, home’s equity, and a variety of other factors will play into what mortgage rate you get and what monthly mortgage payment you receive, yet for some homeowners refinancing to a lower rate is bringing a much lower monthly mortgage payment.
While 5% is not the lowest interest rate that has been seen on mortgages over the past few months, it is a much lower rate for many homeowners than what they have currently. Homeowners that may be considering refinancing or buying a home for these low interest rates should make sure that they are financially able to afford the costs of doing so.
Buying a home or even refinancing a home may seem like a good idea due to low rates at the current time, it is going to come with certain costs and homeowners need to make sure they can afford to pay these costs before they move forward with buying or refinancing.