Back in 2007, many clients were happy locking in to 5 year mortgage terms at rates around the 6.25% mark. 5 years later, those same clients whose mortgages are coming due are feeling pretty good about renewing at a sweet 3.19% for the next 5 years.
A client who refinanced his conventional $250,000 mortgage in 2007, would have been paying a monthly mortgage payment of $1637.00 for the past 5 years. Today, that same mortgage’s monthly payment would be just $1208.00- a monthly cash savings of $429.00 not to mention the benefit of paying down the principal faster.
Now is a great time to refinance and lock your mortgage in for the next 5, 7,or even 10 years. If you’re considering taking out some equity to purchase a second home, consolidate some debts, or complete some home renovations now is a great time to do so.