Have an adjustable rate mortgage (ARM) and been thinking about refinancing to a fixed rate? You may want to consider taking action. If you have been following mortgage rates closely over the past couple months, you are probably aware that rates have been quite low. Now, according to the most recent update from Freddie Mac, they have dropped again.
On October 10th, 2019, Freddie Mac reported that the rate for a 30-year fixed rate mortgage was just 3.57%. The rate for a 15-year fixed-rate mortgage was just 3.05%. To give you some perspective, on October 11th, 2018, the rate for a 30-year fixed rate mortgage was 4.90%. For the 15-year fixed-rate mortgage, it was 4.29%.
So, we have not only seen a significant drop over the course of the week, but also a sizable drop over the course of the past year. Explaining the decreased mortgage rates, Freddie Mac stated, “Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground.”
If there is one thing which is a given with the markets, it is that rates change—but they don’t keep falling forever. So, it is important to you take advantage of opportunities like this one when you have the chance. You never know when rates could go back up.
If you refinance now, you could potentially lock in a rate close to 3.57% for the remaining lifetime of your mortgage (the exact rate will depend on exactly when you refinance). So, if rates return to what they were last year or even higher, you continue to pay the same low rate.
Refinance Your Home Loan in Virginia Now with First Residential Mortgage
Are you ready to lock in an affordable mortgage rate for the rest of your loan term and enjoy the peace of mind that comes with predictable fixed payments? Give First Residential Mortgage a call today at (540) 838-5868. We work with homeowners and homebuyers in Blacksburg, Marion, Abingdon, and throughout Southwest Virginia.