Here’s how to find out if it’s right for you.
Mortgage rates have hit yet another record low, so it’s no wonder many Americans are refinancing their homes.
Add to that the coronavirus pandemic and the economic recession, and the need to find extra cash or to cut expenses becomes even greater. The 30-year fixed mortgage rate is now 3.24% and the refinance rate is 3.33%, according to Bankrate.com.
So how do you know if it is the right time to refinance your home?
“We are telling everybody who has a loan over 4% to consider refinancing, if they still have income,” said Winnie Sun, president and founder of Irvine, California-based Sun Group Wealth Partners.
“If you can reduce your interest rate by a half or three-quarters of a point, it is worth looking into refinancing,” said Greg McBride, chief financial analyst at Bankrate.com.