Almost 6 million borrowers across the country could improve their rate by at least .75%. Do you fall into this boat?
While many experts predicted rates to rise steadily through 2019, the market has had other ideas. Opposite of projections, mortgage rates have actually fallen throughout the first half of the year. This means many homeowners could benefit from refinancing their home loan and lowering their payment, on average by about $271 per month.
The sharp drop in rates comes as a surprise, as most experts were betting that rates would be on the rise, says Mark Hamrick, Bankrate’s senior economic analyst. For borrowers, however, this is an unexpected gift.
“The fact that this swoon in rates has occurred as and when it has underscores the fact that accurately predicting the future of rates is difficult indeed. So, instead of trying to outsmart the market, go with what you know for certain which is where rates are right now,” Hamrick advises. “Between the pace of the news cycle and economic developments, the environment can change with release of a single presidential Tweet. In an uncertain environment, seize upon certainty where you can find it.”
Also, this could be an excellent time to try and refinance out of your PMI, if you put less than 20% down when you purchased your home. If your equity in the home has gone over 20%, you could see a double benefit by shaving off your interest rate while knocking off the PMI from your mortgage.
Contact our team of California mortgage experts today at (800)455-0986 or schedule a complimentary consultation to see what options are best for you. With offices in Sacramento, Davis, and Irvine, we are here to help you every step of the way.
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Restrictions may apply. American Pacific Mortgage Corporation is licensed by the Department of Business Oversight under the CRMLA. NMLS #1850. All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.