October 1, 2020
3 MINUTE READ
There are plenty of reasons to refinance your home loan besides interest rates. Everyone’s situation is different, and you should take your entire financial situation into consideration before refinancing
But if you want to talk about interest rates, let’s talk about interest rates. Rates have been declining since 2000. Back then the average home loan interest rate was 8.05%. Today in 2014 the average interest rate is about 2.87%. That’s a huge decrease and one that as many as half of all mortgage owners have not taken advantage of.
The reality is that rates will not stay at current lows forever. In fact, current home loan interest rates are always fluctuating. Sitting back and trying to time market conditions is usually not the best idea. Usually, people wait too long and miss out on the opportunity.
If you look back to November 29th of 2012 that you would see that 30 year fixed mortgage rates were at 3.32%. That was the lowest they had been since 1975. Interest rates have already started to recover but at an average of 2.87% today there is still a lot of savings being left on the table by homeowners.
We’re not economists but if you play around with this graph long enough you’ll notice that interest rates are not normally this low. This is not a “let’s time the market” play. The people who are sitting in mortgages with 6% interest rates are losing out on a lot of savings in terms of monthly payments and interest expenses over the life of their loan.
There are many more reasons to consider refinancing your home loan. But don’t try to research every single reason why you should do it before you start the process. At the bare minimum go to our free rate quote tool and get a free personalized quote in 30 seconds. We’ll help you every step of the way to get the savings you deserve.