The 30 year fixed rate mortgage has been under 6 percent for the third consecutive week with the current average 30 year fixed rate mortgage sitting at 5.48 percent, according to Freddie Mac. That is down 0.21 percentage points from last week which means an average savings of $13.24 for every $100,000 financed.
The average fees that mortgage lenders are charging consumers on the 30 year fixed rate mortgage have declined from 0.5 percentage point to 0.4 percentage points. This is also great news for homeowners as they will save an average of $100 in closing cost for every $100,000 financed.
Tony Crescenzi, a fixed income analyst at Miller Tabak, reports that the mortgage rate decrease has made up to 70% of U.S. mortgages eligible for refinancing. To be deemed eligible for refinancing your current mortgage must be .40% or higher than the current average mortgage rate.
Logic says that a lower interest rate means lower payments, but you need to weigh all of the factors before making a decision. Other key factors that play into refinancing besides the mortgage rate is overall payment savings compared to your current mortgage, tax benefits, interest savings and of course your monthly mortgage payment.
Future Planning Financial is a good source to find more mortgage advice that can help you in your research to finding the best mortgage for your situation. The Mortgage Refinance section of the website has some great articles on how different types of mortgages work and tips on how to find the best mortgage for you individual situation.
