Now Is The Perfect Time To Refinance The Mortgages On Your Del Mar Homes

The economy is going through a rough patch, and the stock market is well below its all-time high. Mortgage rates have been dropping since the end of last year. For owners of Del Mar homes, that can mean that it's time to think about refinancing your mortgage. If you can save on the interest you're paying, then it's time to do a mortgage refinance on your Del Mar homes.

• For some homeowners whose adjustable-rate mortgage (ARM) interest rates are rising, the low interest rates on 30- and 15-year fixed-rate mortgages offer an opportunity to refinance into something that's a known quantity.

• If you have a mortgage that's going to adjust, it's important to get into a fixed-rate program now.

• In Freddie Mac's latest survey of mortgage rates, a 30-year fixed-rate mortgage averaged 5.72 percent with fees totaling 0.4 percent. A 15-year fixed-rate mortgage cost an average of 5.25 percent, plus 0.4 percent in fees.

• A year ago, a 30-year mortgage cost an average of 6.3 percent, up more than a half percent, while the average 15-year mortgage cost 6.03 percent, nearly a full percentage point higher than what is available today.

• Should you do a mortgage refinance now? Or, wait to see if interest rates drop further?

Conventional wisdom used to say that if you could shave 2 percentage points off of your interest rate, you should refinance your mortgage. But today, with zero-cost mortgage refinance options widely available, it may make sense to refinance if you can shave a half point off the interest rate you're now paying -- without lengthening the loan term.

When you refinance, the goal should be to lower the amount of interest you're paying, either by lowering the interest rate or shortening your loan term.

 

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