Vector Duo Real Estate Blog

The refinance home mortgage world has been abuzz over the past several months as refinance loan rates have fallen to levels not witnessed in many decades.  The national average refinance mortgage rates for a 30 year fixed rate home loan is currently at about 5.0 percent.  Now, if you are currently in a 30 year mortgage at 6.5 percent or higher, refinancing into another 30 year refinance loan can save you quite significantly on a monthly basis, but there may even be a better opportunity for you to save over the long term.  That would be by refinancing into a 15 year fixed rate mortgage and not only lowering your loan term, but also lowering the qualified refinance interest rate that you will get.  Currently, the national average refinance rate for a 15 year fixed mortgage is at around 4.5 percent.

So, for a little bit extra on the principle and interest payment each month, you could get into a 15 year fixed rate refinance mortgage that will save you potentially hundreds of thousands of dollars in interest over the term of the loan, depending upon the loan amount. 

Of course, for this strategy to work in the borrower’s favor, his or her timeframe must be long term.  If you are mortgage refinancing with a timeframe of just a few years, the longer term 30 year home loan option may be a better fit for you.  The good part is that with refinance mortgage rates so low, there are multiple options for you to either save significant money in the short term or hit the savings bonanza with a shorter term loan for the long term.