Rates Drop: Now’s The Time to Refinance

A big rally in the bond market has resulted in a sharp drop in mortgage rates. For the week ended Feb. 6, average 30-year fixed rate loans were 4.23%, down from 4.53% at the end of 2013.

While this is still higher than the all-time lows seen in 2012, it’s still a great opportunity for San Diegans to refinance and lower their costs. Unfortunately “a lot of consumers are leaving money on the table,” says Steve Deggendorf, a director in Fannie Mae’s economic and strategic research group.

According to Fannie Mae, between 40%-50% of Americans with a mortgage have never refinanced and have an average mortgage rate around 6%. And the reasons people don’t refinance:

  • Payments aren’t reduced enough.
  • Closing costs are too high.
  • Don’t want to extend term of loan.
  • Trust issues with lender.
  • Under water on mortgage or other qualification issues.

These are reasonable concerns, but many of them can be addressed. For instance, it is possible to get a refinancing with zero or very low closing costs like our Zero Refi option.

Contact us today to learn your refinance options:

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