Previous | Don’t let love blind you: avoid the online romance scam Next | Six predictors of happiness in retirement
November 19, 2019 / David Bimler
In the market for a mortgage? Your time may be now

In the market for a mortgage? Your time may be now

Amid ongoing international trade disputes and a weakening global economy, mortgage affordability in the U.S. is improving. In fact, mortgage rates have hit a three-year low since the Federal Reserve slashed the federal funds rate this summer — the first cut since the Great Recession.

The average interest rate on a 30-year, fixed-rate mortgage fell to 3.49 percent in September, down almost a full percentage point from 4.5 percent for the same month last year, according to Freddie Mac, a provider of capital for mortgages.

And some economists predict interest rates will remain low for the foreseeable future.

So, as rates drop, many homeowners may be wondering: Should I swap my mortgage for a new one with more favorable terms?couple standing in front of house

Depending on the amount of the loan, the benefits of refinancing can be substantial. Homeowners with a mortgage rate of 4.25 percent or higher, or those who have an adjustable rate loan, could save big by refinancing. Doing so could result in reduced monthly payments, a lower interest rate and a shortened loan term.

Timing is a fickle thing, but the moment to consider refinancing may, indeed, be now. Forecasts aren’t always right, either by scale or timing, so if homeowners wait to see if rates plummet even further, they could miss their window of opportunity for snagging a better loan.

Of course, refinancing is not free, costing an average of $2,500 to $3,000, depending on the amount of the loan. That includes fees for closing, a new title and a new appraisal. But depending on your situation, the benefits could far outweigh the costs.

To get the best deal, be sure to compare different rates from different lenders — and always talk to your lender about the exact terms, conditions and costs.

David Bimler is the assistant vice president, residential mortgage and consumer lending sales manager at F&M Trust.

Recent Articles
Credit reports are now free once a week
Credit reports are now free once a week

Credit reports are now free once a week

July 02, 2020 / Ray Wills

Turned down for a bank account? This could be why
Turned down for a bank account? This could be why

Turned down for a bank account? This could be why

June 25, 2020 / Sarah Stansfield

The secret to avoiding secret shopper scams
The secret to avoiding secret shopper scams

The secret to avoiding secret shopper scams

June 22, 2020 / Ray Wills

How the CARES Act impacts student loans
How the CARES Act impacts student loans

How the CARES Act impacts student loans

June 18, 2020 / Shelby White

The U.S. is in turmoil, yet stocks are climbing
The U.S. is in turmoil, yet stocks are climbing

The U.S. is in turmoil, yet stocks are climbing

June 05, 2020 / Warren Hurt

Watch out for unemployment scams
Watch out for unemployment scams

Watch out for unemployment scams

June 05, 2020 / Ray Wills

Emergency Response in today's financial markets
Emergency Response in today's financial markets

Emergency Response in today's financial markets

June 02, 2020 / The Merrill Anderson Company

How to protect yourself against money mule scams
How to protect yourself against money mule scams

How to protect yourself against money mule scams

May 22, 2020 / Ray Wills

Four tips for avoiding overdraft fees
Four tips for avoiding overdraft fees

Four tips for avoiding overdraft fees

May 14, 2020 / Sarah Stansfield

Join our e-newsletter

Sign up for our e-newsletter to get new content each month.

NOTICE: YOU ARE LEAVING F&M TRUST!

You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.