Is now the time to refinance your mortgage?

Is now the time to refinance your mortgage?
(Source: WVIR)

CINCINNATI (FOX19) - Mortage rates have been really low and there’s a chance they could go even lower.

If you’ve been thinking of buying a home, you were already looking at some of the lowest mortgage rates in years.

Just last week we told you it’s a good time to buy a house now

Thanks to lower long-term government bond rates and the Federal Reserve cutting its benchmark interest rate this week, those interest rates could dip even lower.

However, they may not dip immediately.

Some experts say that it depends on the lender… and the number of people they have to process the volume of loans they’re already getting. Some lenders may lower their rates, but tell you the processing time will take longer than usual.

It’s different if you’re refinancing.

If you want to do big home improvement and are looking to use a home equity line of credit to pay for it – those rates will probably drop even more.

Be careful though, many of these loans are adjustable-rate loans and move up or down with the prime rate.

A good rule of thumb for refinancing is to look at the new loan rate.

If it is point five percent or lower than your current rate…it is often worth the costs that go with the refinance.

The bottom line - if you’re in the market for a new home or looking to refinance – now may be a great time. Most lenders will let you have a lower rate if it does go down before closing.

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