Mortgage Rates Hit New Low: refinance or buy before it's too late

Mortgage Rates Hit New Low: refinance or buy before it's too late -

One of the best moments in recent memory to refinance got even better last week when mortgage rates fell to a 16 month low. Mortgage finance company government-sponsored Freddie Mac said the average 30-year fixed-rate mortgage fell to 3.97%, the lowest since June 2013, when the average loan was 3.93%. Interest rates change frequently, and even though it may be some time before seeing the lows of last year, there is still time to save a lot of money.

What this means if you want to buy or refinance

If you've thought about buying a house or want to refinance, this is a perfect time to do it. Although interest rates have not led to a rally purchase of a house as some might have hoped, many people are refinancing. You could be saving tens of thousands of dollars in a ready-to 30-year fixed rate with the recent drop in interest rates.

For perspective, interest rates were as high as 8.52% in 2000, and most of the average monthly easily topped 15% in the early 80s! A 3.97% on average last week, you could have won more than $ 18,000 over the term of a fixed-rate loan to 30 years $ 500,000 (with a deposit of 20%) compared to if you made your mortgage just a year before - on October 2013 the average was 4.19%. Prices may fluctuate rapidly that even if you have a mortgage recently, it may still be worth your while to refinance now. Visit our refinancing resource center to see the current rates for loans and get an estimate of how much you might be able to save.

Consider applying for HARP

Home Affordability Refinance Program (HARP) is a government program that can save you even more money if you are approved. Designed to help homeowners make their payments more affordable at home by connecting with a lender, HARP has saved people $ 3000 per year on average, according to the website of the White House. Underwater homeowners or people who owe more than their house is currently worth, can also benefit from this program. It is important to act quickly, however, because HARP to expire on 31 December 2015, just giving you a little more than a year to implement.

You can find out if you qualify for HARP refinance when you request a quote. NextAdvisor.com teamed with Lending Tree to give you a free quote from a number of top mortgage lenders. Just click on the button above to get a quote refinancing and see if you can save even more with HARP. For more information on obtaining or refinancing to get a loan for the first time, visit our mortgage resource center.