If you are a homeowner with a mortgage and you haven’t looked at the current rates for new mortgages, now is the time. Due to the panic around COVID-19, mortgage rates have dropped to levels not seen during my time in the financial services industry. We have seen homeowners refinance to rates just above 2% for a 15-year term and just over 2.5% for 30 years. If your rate is one percentage point above these rates and you plan on staying in your home for another 5-7 years, now is the time to consider refinancing. There is a cost to refinancing, so it’s important you stay in your home long enough to realize the savings from the lower interest rates. If you have any questions on this or would like us to help you with an analysis on your current mortgage, please let us know. It appears that interest rates will not go up anytime soon, but as the global economy opens back up after the COVID-19, I would expect to see interest rates begin to rise. This may be a once if a lifetime opportunity for mortgage rates so if you are contemplating a new home purchase, now may be the time.
Today is also the day for quarterly tax payments.
Please let me know if you have any questions or concerns.
Brett S Carleton, CFP®