As we all know, the economic climate has taken a battering over the last month. Leaving many Americans looking for ways to save on their monthly bills to weather the storm. Many are reaching out to their mortgage lenders for solutions or even forbearances.
For those searching for relief, there may be an option for positivity. Today's mortgage rates are extremely competitive. This signals it actually could be a good time to refinance.
How Refinancing Works
When you refinance a mortgage, you swap your existing home loan for a new one -- one with more favorable terms, which generally means a lower interest rate. That, in turn, could lower your monthly payments, making them more affordable -- and that's a good thing whether your income has taken a hit due to COVID-19 or not.
What Do Mortgage Rates Look Like Today?
As we sit today, the average rate for a 30 -year fixed mortgage is 3.25%. Comparatively, the average rate over the past 52 weeks hit a high of 4.37% and a low 3.13%. The data tells us now could be a great time to lock in a really solid rate. Especially if you intend on staying in your home for the foreseeable future.
What is the benefit of Refinancing Today?
The low rates can save you quite a bit on your monthly mortgage payments. Chances are rates won't stay at multi-decade lows for much longer. In fact, the fed has already signaled that it expects rates it expects rates to continue increasing. If this seems like an option for you, taking action today could be a very smart move.