Wells Fargo announed last week that interest rates are at their lowest since 1971. This is an historic moment in the history of mortgage rates. They dropped last week to 5.19% fom 5.47%.
Want to refinance? Check this out:
- If your closing costs are $3000 and your payment goes from $1200 a month to $1075 a month, it would take three years to break even. So it’s only worth it, if you plan on living in that house longer than that.
- The difference between a loan modification and a refinance is that the loan modification is only for the borrower who is behind in his payments. The refinance is a totally new loan with a length of 15 or 30 years.
- If your existing loan has a prepayment penalty, can you still refinance? Yes, if the lender will waive that penalty. Ask before you start any application.
Have any questions, email me or comment below.