Mortgage Rates Hit All-Time Low

Just when you thought they were as low as they could get, mortgage rates continue to slide. In fact, you can now get a 30-year home loan at the lowest interest rates in 39 years, according to Freddie Mac.

The low rates are likely due to the struggling economy, but are a sign that people should take action if they can afford to refinance.

And Americans are definitely taking advantage of the opportunity, according to Quicken Loans Chief Economist Bob Walters. “Mortgage activity, much like the weather around the country, has remained hot,” Walters said. “Low rates are driving consumers into the market, and for good reason. Folks who refinanced not more than a year ago are now looking at a scenario where it may make sense to again refinance. The rates out there are simply that good.”

What impact do these low interest rates have on my monthly home loan payment?

Depending on where you stand today, the impact on your monthly payment could be pretty significant. Take a look at the chart below to see the effect of mortgage rates on a $200,000 mortgage payment over the last 25 years:

As you can see, rates are at all-time lows. Find out how much you could save each month in this rate environment by checking in with a trusted Home Loan Expert or view your personalized home loan recommendations inside of Quizzle.

Even with these historically low rates, is a new home loan right for you?

Even though a lower interest rate could lower your monthly payment, you may need to pay some cash up front on a new home loan for things like private mortgage insurance (PMI) or a down payment. Despite these factors, refinancing is still the fiscally smart choice for many people.

Some factors to consider when thinking about a refinance:

• Is your credit in shape? Although a credit score north of 720 is optimal for the best mortgage rates, there are currently options for people with credit scores as low as 580. Find out what your potential for credit improvement is and how to achieve it inside of Quizzle.
• Do you have the money to put toward PMI or a down payment? If you do, refinancing is likely a worthwhile investment. If you can only come up with a small down payment, an FHA home loan may be a good option for you.
• How long to you plan to stay in your home? If you plan on moving in the next five years, now may not be the right time for you to refinance.

For more information about whether a new home loan or refinance is right for you, check out your personalized home loan recommendations inside of Quizzle or contact our trusted partner, Quicken Loans, America’s #1 online lender.