There are several important factors you should consider before you refinance your mortgage this year, including current rates and your financial situation.
Refinancing in Oregon is a great way for homeowners to take advantage of lower mortgage rates, especially if they originally locked in their mortgage with a much higher rate. Refinancing can save thousands of dollars, and in this article, we’ll examine why an increasing number of Oregon homeowners may be refinancing in 2021.
In This Article:
- Refinancing Your Oregon Home in 2021
- Home Prices Up Sharply
- Mortgage Rates Declining
- Can You Benefit From a Refinance?
With rising home prices and extremely low mortgage rates, a lot of Oregon homeowners could refinance their homes to save money in 2021.
Refinancing Your Oregon Home in 2021
Home prices across the state of Oregon have risen steadily over the last couple of years and are expected to continue increasing into 2021. Meanwhile, the average rate for a 30-year fixed mortgage has been hovering near historic lows over the past few months. Rates are lower today, on average, than they were a year ago.
Because of these factors, many homeowners in Oregon are now in a position to refinance their homes — and they could potentially save money by doing so.
Home Prices Up Sharply
Let’s start with a look at home prices in the state. According to the latest data from Zillow, the median home value for Oregon climbed to around $402,573 as of spring 2021. The median increased by 10% over the last 12 months (as reported in March 2021), and is expected to continue increasing over the next few months.
As a result of this trend, many homes across the state of Oregon are worth more now than they were when their owners first purchased them. And this has created favorable refinancing conditions for many homeowners across Oregon.
Mortgage Rates Declining
Meanwhile, mortgage rates continue to hover near historic lows. According to the weekly industry survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan was 3.02% during the week ending March 4, 2021.
Today’s rates are lower than they were a year ago. And they are significantly lower than they were several years ago.
When you combine rising home prices with relatively low mortgage rates, you have two of the key ingredients for a favorable refinancing situation. This is why a lot of homeowners in Oregon might be able to refinance their mortgage loans in 2021, saving money over the long term.
Home-price growth also increases equity for homeowners, which can make it easier to qualify for refinancing. Additionally, many homeowners in Oregon could benefit from today’s relatively low mortgage rates. Securing a lower rate can reduce the size of the borrower’s monthly payments, which brings the potential for long-term savings. So there’s a lot to consider right now.
Can You Benefit From a Refinance?
Does it make sense to refinance your home in Oregon during 2021? How much money might you save by refinancing into a lower mortgage rate?
To answer these questions, you must determine your “break-even” point. If you’re refinancing in order to shrink your monthly payments and save money over the long term, you’ll want to know when you will break even. This is the point where the money you save (by lowering your payments) begins to exceed your refinance closing costs. And we can help you determine this.
Let’s do the math: Our financing experts can review your current mortgage situation, including your interest rate and equity level, to determine if a refinance will work to your advantage. Please contact us with any questions you have or to receive a rate quote.
Have Questions About Refinancing in Oregon?
Are you a homeowner in Oregon looking to refinance? Or are you looking to buy a new home and require a mortgage? Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We have been offering a variety of mortgage programs to borrowers across the entire state since 1992, as well as Oregon, Idaho, and Colorado. Please contact us if you have mortgage-related questions.