When Should You Refinance Your Home?

Today we’re talking with Terry Schenck from Prosperity Home Mortgage about what is happening with mortgage rates right now. With the coronavirus scare and plummeting markets, rates have actually responded positively: they’re lower. Mortgages rates have fallen to an eight-year low between 3% and 3.5% due to the coronavirus outbreak. Global markets are nervous, and this is impacting the global economy.

As a result, the 10-year treasury rate has come way down, and mortgage rates usually follow the 10-year treasury rate. So when should someone refinance their home? When we see these very low mortgage rate windows, they don’t last long. Right now, refinancing is an especially excellent option.

Terry recommends refinancing if doing so will lower your rate by at least 0.5% and you’ll be in the home for at least three years. You can also switch from a 30-year mortgage to a 15-, 20-, or 25-year mortgage. If you’re planning for retirement, this is a fantastic time to plan for a shorter-term mortgage. Some people are apprehensive about refinancing because they’re resetting the clock, but often you can take time off the clock while still having a lower rate.

If you have questions or to find out whether refinancing is smart for you, contact me at [email protected] or Terry at (703) 408-3978. We look forward to being a resource for you.

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