- Live Rates
- Mortgage Refinance
- Contact Us
When mortgage rates are low, that presents an opportunity for homeowners to refinance their mortgages to take advantage of lower rates and huge savings. With rates being super low these days, many homeowners have been capitalizing on refinances.
In this article, we’ll go through the current refinancing activity market in Portland and across the country and help you determine if now is the right time for you to refinance.
Are you thinking of refinancing your mortgage in the Portland, Oregon area? Wondering if it’s a good time for a refi? Here’s a market update to help you decide.
For months, refinancing activity in Portland has been skyrocketing as mortgage rates have continued to plummet over the past year-and-a-half. As of the week ending January 15, 2021, the mortgage rate for a 30-year fixed-rate mortgage sits at 2.65%, which is near historic lows.
And rates actually hit an all-time low several times over the last year, which really ramped up refinance activity in Portland and across the nation, causing backlogs of refinancing applications among lenders.
Despite the COVID-19 pandemic, refinancing activity is skyrocketing. More specifically, refinance activity was up 200% over the course of 2020 from where it was in 2019. People are taking advantage of the lower rates and are saving a ton of money by refinancing.
Rising home values may also enable more Portland homeowners to refinance their mortgage loans in 2021. House prices across Portland have soared over the past year. In January 2021, Zillow reported that the median home price in Portland had increased 8.5% over the previous 12 months, and they are expected to increase 10.4% over the next year. Right now, home prices in Portland are averaging $497,589.
In the state of Oregon as a whole, the average home price is currently $393,710. Prices have increased 8.5% over the past 12 months, according to Zillow, and are expected to increase another 10.4% over the next year.
Rising house values give homeowners more equity, which can make it easier to qualify for a refinance loan. This, too, could lead to increased mortgage refinancing in the Portland, Oregon area — especially if we see additional drops in mortgage rates.
So how do you know if it’s a good time to refinance your home in Portland? When does refinancing work to your advantage, financially speaking? Fortunately, there’s no guesswork involved here. It’s just basic math.
Assuming you want to refinance primarily to reduce your monthly payments, all you have to do is calculate your “break-even” point. This is the point at which your accrued monthly savings (from the new home loan) begin to exceed your upfront closing costs. If you keep the loan beyond that point, it works out to your financial advantage.
By dividing the cost of the refi by the amount of money saved each month, you can determine how many months it would take to reach your break-even point.
Could you benefit from refinancing your Portland home in 2021? We can help you decide by evaluating your current loan situation and your financing goals. Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado and provide qualified borrowers with a variety of mortgage programs to suit their needs. We have been helping borrowers since 1992, and we’d be happy to help you too. Please contact us if you have mortgage-related questions.
Fannie Mae and Freddie Mac have been in the news quite a bit over the past few years, so it’s a good time to do a refresher on who they are and what role they play in the real estate market.
In today’s blog post we’ll share how you can provide paperwork and other evidence to show your mortgage lender that you’re a quality applicant who has the ability to make their payments.