Refinance Activity Up Dramatically Year Over Year

Filed under: Market Comentary

This morning I listened to a podcast that shared an interesting statistic: year over year, refinance activity is up 180%. Anyone in the loan business has seen an increase in demand for refinances. A bunch of activity has been happening right now, especially with homeowners looking to lock in the lower interest rates that are available.

Why Refinance Your Home?

Rates are at a nearly 3-year low right now, which is a huge bump for people. I hear people mention refi “rules,” such as don’t refinance unless you can get a 1-point interest rate improvement. Should these assumed “rules” affect your decision to refinance? Don’t jump to conclusions before talking to a mortgage pro.

The nice thing about refinancing is that the numbers don’t lie. I’ve got a straightforward spreadsheet that I’ve been using for years. We plug in your current mortgage information, enter in the current rates and the spreadsheet shows the break-even point on a potential refinance. This calculation takes everything into consideration, including closing costs, the new interest rate, and other expenses that will need to be paid.

Should You Refinance Right Now?

It’s a simple yes or no answer regarding whether refinancing will save you money. We’ll plug in the numbers so that you can see how refinancing will affect your payment, overall interest costs, and the amount of time that it will take to pay off your home. It’s a clear and easy decision to see if a refinance makes sense for you or not.

Last year, rates were going up, which naturally decreases the amount of refi activity that is happening. Since the rates are dropping now, it makes sense that there would be more opportunities for homeowners to save money on their loans.

If you need help looking at your loan and the possibilities that are available, I’m happy to crunch the numbers for you. My goal is to help you find the right mortgage solutions, so I always offer honest, straightforward information. Call me today to learn more.

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