A massive mortgage refinance boom was experienced in the United States during 2013. Now, the economy presents another opportune moment to refinance a home mortgage. The cost of fuel has been plummeting, which has given investors little reason to believe that inflation is going to take place in the U.S. anytime soon, and thus, investors are heading towards keeping their dollars safe: in the bond market. The bond market includes those packaged by the mortgage giants Fannie Mae and Freddie Mac, which fund most United States mortgages. The influx of funding in the bond market is driving interest rates down significantly, which is great news for current and prospective homeowners alike.
The current 30 year fixed rate mortgage stands at 3.8 percent at a time when analysts and economists expected rates to be upwards of 5 percent. The 3.8 percent mortgage rate means that Americans with mortgage rates above 3.8 percent may have lower monthly payments, meaning more cash in their pocket, and more willingness to contribute to the economy. It is worth plugging in numbers to an online calculator and analyze the potential savings. The Broadview Mortgage App provides calculators for various loan programs. Of course, considering refinancing a home requires that the homeowner stay in that home for some time, unless one plans to turn it into an investment property. The costs associated with purchasing and refinancing must also be taken into account, such as the loan origination and appraisal fees.