You shouldn’t be pay this much.
For homeowners who hadn’t leveraged historically low mortgage rates in the last 18 months, knowing if they should refinance now can be challenging. At the beginning of the pandemic –– and with the dropping mortgage rates –– many homeowners chose to refinance to save thousands annually. However, homeowners who are late to the party now have to contend with mortgage rates rising in response to the Feds’ plan to increase rates in 2022. This has left many wondering if now is the time to refinance.
The short answer is yes.
If you didn’t maximize record-low mortgage rates, you still have a chance to get lower mortgage rates before the Fed raises rates.
It’s unlikely that mortgage rates will decrease to levels last seen in 2020. On the contrary, they may increase substantially in the next year or two. With this in mind, don’t bide your time. Instead, make the most of these rates while they are available. Although higher, they are not as high as they could be.
Your hesitance is understandable. You may wonder if refinancing is worthwhile. If you’re going to save money, then it is.
Currently, a 30-year mortgage is 3.12%.
If refinancing your home could shave off 1% on your mortgage rate, that means you’ll be paying $100 less for every $1,000 you spend on your mortgage repayments. Although that may seem insignificant, that adds up rather quickly.