Mortgage rates hit an all-time low this week, presenting US homeowners and real estate investors with an opportunity to decrease their mortgage expenditures. It appears as though the Fed and Treasury are doing something right in their efforts to shore up the homeowner in the midst of the credit carnage. For those fortunate enough to have the equity and credit rating to either refinance or buy a new home, for this first time ever, rates on conventional 30 year mortgages have dipped below 5% to 4.96%.
This table demonstrates the benefit of refinancing at various rates and mortgage amounts.
If rates continue to drop and eventually reach 4% for a 15 year mortgage, you may soon see consumers refinancing from 30 year loans right into 15 year loans with only a marginal increase.
What do you think? How low do rates have to go before you refinance?
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