According to the Primary Mortgage Market Survey from Freddie Mac the new average mortgage rates have yet again hit a new low.
|October 7, 2010||30-Yr FRM||15-Yr FRM||5/1-Yr ARM||1-Yr ARM|
|Average Rates||4.27 %||3.72 %||3.47 %||3.40 %|
|Fees & Points||0.8||0.7||0.6||0.7|
This information is based on Mortgage Companies all over the nation. Freddie Mac compiles the information and averages it out to determine where rates stand today.
Is time to take Action?
You know from reading my mortgage updates in the past that I believe it is no time to drag your feet. If you are in a position to be able to refinance now is the time to jump on board.
What if you are say 12 years into a 30 Year mortgage, is it worth refinancing then?
This is an excellent question and one that takes some research on your part to answer. If you are around 12 – 15 years into your mortgage then chances are you are paying much more of the principle with each and every payment. (Interest is front loaded and you pay nearly 90% interest in the first 10 years of a mortgage.)
Therefor if you are paying mostly principle now why refinance. Well in this case there are only three factors you need to consider and that is TERM, TERM and TERM.
If you can refinance into a 10 year mortgage and have a similar payment because rates are so low, you just knocked 8 years of your mortgage. Do not and I repeat DO NOT refinance into another 30 year mortgage if you are many years into your current 30 year fixed.
Consider your options and have your loan officer show you the options for a 10 year and 15 year mortgage.
If you want some more help check out our mortgage tips.