Sunday, January 4, 2009, AM | 1 Comment
Lower rates and falling house prices are making home mortgages more affordable to potential home buyers. For instance, house prices fell 18 percent over the 12-month period ending in October, 2008. As a result, financial news have it that the number of refinance applications for conventional mortgages jumped over 500% between the weeks ending on Oct. 31 and Dec. 26.
According to Freddie Mac’s weekly survey released on Wednesday December 31, 2008, the average
- 30-year fixed-rate mortgage fell, down to a record low of 5.10% since Freddie Mac’s survey began in April 1971. A year ago, it was 6.07%.
- 15-year fixed-rate mortgage fell, down to a record low of 4.70% since March 25, 2004. A year ago, it was 5.68%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.57%. A year ago, it was 5.78%.
- 1-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.85%. A year ago, it was 5.47%.
Use the below calculator to figure out if you could save money by refinancing:
Moral of the story
If you have mortgage that has a higher interest rate than at present, then you might want to talk to your lender about refinancing your mortgage.