Mortgage rates have been improving during the month of February as investors continue to invest in bonds pushing yields and mortgage rates lower. As the economy begins to slow, mortgage rates usually improve, especially if mortgage rates were at higher levels like they were back in October 2018. For people that bought a home in 2018, and in particular, people who bought a home from late summer to early fall, you may want to look at current mortgage rates to see if you can lower your interest rate and lower your monthly mortgage payment. The decision to do so may save you lots of money.
We’re about six weeks into 2019, and so far mortgage rates have done really well. February 2019 mortgage rates are almost back to levels last seen a year ago. That’s great news for people that are ready to buy a home. In fact; inventories are increasing around the country so not only are mortgage rates at great levels you also have more home options to choose from. This is a win-win for homebuyers. Back in 2018, it was not uncommon that you would be competing against 4-6 other offers; however, now many homes are only receiving 0-3 offers which makes this a buyer’s market.
If you currently own a home and have a high 30 year fixed or 15 years fixed mortgage rate you should look at where mortgage rates are at to see if a refinance is a smart choice. California, one of the biggest states in the country, is seeing a pick-up in homeowners looking to refinance their current mortgage. The reason is simple; a low California mortgage rate can save a homeowner thousands of dollars in lower interest payments and put them in a much better financial situation. And another reason more homeowners in California are looking at refinancing is to take cash out to do home improvements such as; updating an outdated kitchen; new flooring or a new master bathroom.
Fixed Rate Mortgages:
Which mortgage rates look the best? Fixed rate mortgages seem to be doing better than adjustable rate mortgages as we move into mid-February. And the most popular fixed rate mortgage right now is the 30 years fixed rate. However many people are considering moving to a shorter term such as a 20 year fixed rate mortgage and possibly a 15 year fixed mortgage. The last option would be a 10 year fixed rate mortgage however very few people want a mortgage term that short because the monthly payments are so high. Also, the mortgage rate on the 10-year term is not much lower than a 15 year fixed rate which means there is little incentive to get such a short term loan.
Getting A Quote:
When getting your mortgage quote make sure you have your income and credit score information to tell the loan officer so he/she can give you an accurate quote. The loan officer can look up the estimated value for you on Zillow.com or other home value websites. If you have a good idea of what the value of your home is then going ahead and let the loan officer know.