Analysts expect to see significant changes this April with the US economy, inflation, and mortgage rates.
Summary: You could be inadvertently spending far more on your WA mortgage payments than you need to. With rates as low as they are today, now may be a great time to refinance your mortgage to take advantage of lower rates!
Your interest on your mortgage plays a key role in the overall amount you will pay on your mortgage over the life of your loan. Even a fraction of a percent up or down can make a huge difference on how much you can expect to pay throughout your mortgage term.
That’s why it’s so important to be able to get the lowest rate possible, which is something you may be able to negotiate with your mortgage lender.
But if you already have a mortgage and locked in at a rate long ago, odds are the rates that are being offered today are much lower than what you are paying. That means you are spending a lot more on your mortgage than you need to.
The good news is that you may be eligible to refinance your mortgage to take advantage of today’s low rates. Interest rates have been on a steady decline in WA for months now and have been hovering near historic lows for a long time. By refinancing, you can benefit from these lower rates and possibly save tens of thousands of dollars over the life of your loan.
Refinancing is Becoming Increasingly Popular in WA Thanks to Lower Rates
According to Freddie Mac’s weekly mortgage rate survey, for 30 straight weeks, the average 30-year fixed rate mortgage has held below 4.0% for mortgage applicants. To view rates and costs specific to your situation available through Sammamish Mortgage click Rate Quote as we can offer terms consistently below national averages.
These are the lowest mortgage rates in recent history and now — with a bevy of loan programs for the nation’s millions of “underwater homeowners” including HARP, FHA Streamline Refinance, and the VA IRRRL — millions of U.S. homeowners can exploit the current mortgage rate environment.
But it looks like homeowners are seeing the light when it comes to taking advantage of today’s lower interest rates through refinancing. Today, cash-out refinancing is making a comeback and has become increasingly popular over the past few months.
Refinance lending has almost doubled from the first to the third quarter of 2019, and cash-out refinances increased 24% since the last quarter of 2018. American homeowners withdrew a total of $36 billion in home equity over that time period, the highest amount in almost 12 years.
That’s good news, as it means that homeowners are getting smart about interest rates and how taking advantage of today’s lower rates means saving potentially tens of thousands of dollars.
Here are some key points when it comes to refinancing your mortgage to take advantage of a lower rate:
- Refinancing is “worth the hassle” when mortgage rates are as low as they are today
- Homeowners with the highest credit scores get the lowest rates
- Your current mortgage lender may not offer you the best rates, so comparison shop
Furthermore, the characteristics of the homeowner types most likely to benefit from a refinance include:
- Having with 20% equity in the home
- Having plans to live in the home for at least the next 36 months
- Carrying a current mortgage rate of 5 percent or higher
Even if your current rate is below 5%, utilizing a zero-closing-cost or low-closing-cost option as available through Sammamish Mortgage can still provide significant benefits.
Mortgage rates are at record lows but can’t stay down forever. If you have a home in Washington or Oregon and haven’t participated in the Refi Boom, visit our website or call 425-401-8787 to speak with a loan officer and review your mortgage options. You may be able to save hundreds of dollars per month with little to no closing costs.
Looking to Refinance?
Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.