Your home represents many different things at the same time: a place to protect yourself from the elements, a place to feel safe, a place to entertain guests, a place to raise your children, and a place to serve as a long-term investment. for his family.

For most people, buying a home is often the largest purchase they will make. When it comes to mortgages, the most important variable is the interest rate. Only a small change in the interest rate can mean big savings over the life of the mortgage.

For example, on a $ 250,000 loan with payments spread over 30 years, you would save more than $ 100,000 (that is, almost half of the initial amount borrowed) in total interest payments by reducing only 2% of the interest rate ( let's say, from 7.5% to 5.5%).

The wonders of refinancing

Mortgage rates are always changing. Depending on some macroeconomic factors, such as the prime rate and home sales trends, average mortgage rates can easily change by two or more points (percentage points) in just a few months or years.

That is why refinancing your mortgage can be a smart idea. Refinancing is simply the act of replacing your existing mortgage with a new mortgage, generally at a better interest rate. Doing so can save you a ton of money in interest payments over the life of the loan.

Why it is important to get the current mortgage refinance rates

Since mortgage refinance rates are always changing, even on a day-to-day basis, it is important to stay on top of the market. While no one is smart enough to fully time the mortgage rate market, any lay person can follow the general trends. If the rate is at least 0.5% lower than it was when you signed your current home loan, it may be time for you to refinance,

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Current mortgage refinance rates: tips to know