Time to Refinance?
Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Foreclosures and short sales aren’t the only story in the housing market. Historically low interest rates should be a sign for existing homeowners that it might be time to refinance.
Freddie Mac released the results of its Primary Mortgage Market Survey today and the results are good news for anyone looking to refinance: fixed rate mortgage rates are currently the lowest on record. Following the Federal Reserve’s announcement of its Maturity Extension Program, fixed mortgage rates fell to all-time record lows, averaging 4.01 percent for a 30-year fixed rate and 3.28 percent for a 15-year fixed rate. Adjustable rate mortgage (ARM) interest rates remained at or near last week’s lows, averaging 3.02 percent for a 5-year ARM and 2.83 (up from last week’s 2.82) percent for a 1-year ARM.
At this time last year, average rates were 4.32 percent for a 30-year fixed and 3.75 percent for a 15-year fixed. That’s quite a drop, considering we thought those rates were about as low as they could go.
With rates continuing to fall, many consumers have mixed feelings about refinancing their mortgages. According to Mona Marimow, Senior Vice President at Lending Tree, people who would normally jump at the chance to lock in a lower rate are hesitant because rates could fall even lower. This fear of falling rates results in what she calls “a sort of pre-traumatic stress.” While buyers have traditionally experienced buyer’s remorse after taking out a mortgage and wondering if they got the best rate, today’s consumers put off refinancing due to the fear and anxiety surrounding the mortgage market. After all, if they put it off long enough, interest rates may get even lower.
This might not always be the case; it’s hard to know for sure when rates will begin to climb again and putting off refinancing too long might mean missing historically low interest rates completely. Marimow points out there’s more to refinancing than interest rates – consumers must also take into account loan terms and fees associated with refinancing. If interest rates, including fees, add up to monthly savings and loan terms are reasonable, renegotiating your mortgage might be the best option. And if rates go lower during the term of your loan, it’s not out of the question to refinance again.
If you decide to go the refinancing route, make sure you’re prepared.
Don’t let a fear of falling rates keep you from refinancing, but make sure to take into account everything that goes along with it before deciding if it’s right for you.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.