Is Now the Right Time to Refinance your House Mortgage


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Whether or not to refinance your mortgage squarely depends on you. A choice to refinance your house mortgage will be subject to a number of existing market indicators. With an unpredictable economy, you only need a slight chance to make it right when it comes to house mortgage refinancing.

Many of us look to take advantage of interest rates plummeting and other promising market trends to refinance our mortgages. And although these indicators don’t last for long, you can rely on the following to decide whether or not now is the time to refinance your mortgage.

Why Refinance Now

Well, who would have thought that by 2017, mortgage rates would still be at their all time lows? Back in 2014, the rates started dropping; everyone rushed to take advantage fearing that the rates would start to rise soon enough. Come to the end of 2014, and the mortgage rates had lowered further from 4.5% to just below 3.9%.

As if that was not enough time for the market dynamics to push the rates up again, we are in 2017, and the rates remain at the lows recorded in late 2014. And it seems for what it’s worth, “home owners need to be in no apparent hurry to refinance their house mortgages; at least not until the last quarter of 2017” says property developer Euchar from

30-Year Mortgage Rates Plummet Considerably

Mortgages rates have registered their all-time low values but more significant are the interest rates for 30-year mortgages.

In 2017 alone, a 30-year mortgage loan reached 3.89% in June. This is a drop of 12 massive basis points(0.12%). Considering that the rates for a 30-year house mortgage stood at 4.02 in as recent as May 2017, it would be wise for home owners to ditch their current plans and take advantage of these lucrative 30-year mortgages.

“Buyers are seeing an increase in their purchasing power of up to $100,000 for every quarter-point rate drop. Refinancing home owners are back in the money for a refinance when this made no reasonable sense only a month or so ago.

You should also note that these rates are falling for a range of other loans as well. Recent fiscal analysis indicates that the rates have dropped accordingly for the following loans;

  • FHA loans:-0.07%
  • Conventional loans:-0.10%
  • VA loans:-0.08%

Now that everyone is aware that the rates are sinking, no one is certain how long things are going to stay that way; it would be smart to take action now if you are ever planning on refinancing your house mortgage.

house prices

Government Policies

Little did anyone think that with a shift in the political networks, announcements about expected tax reforms could actually be of an advantage to home owners.

When the new team took office, everyone expected that of all things the mortgage market would be affected the most. However, investors are beginning to realize that it’s not as easy as they thought to move any new initiatives through the corridors of power.

That in effect has meant that with the pre-emptive rise in rates that was experienced in late 2016 (due to the hearsays of a possible tax reform and infrastructure developments which had the potential of dragging the government into borrowing and hence flooding the market with bonds) has actually started to fall in 2017. This gives mortgage shoppers an excellent opportunity to move into the market and take advantage of these low rates.

We are facing a quite unpredictable future as far as mortgage rates are concerned. With the Federal Reserve Meeting scheduled for the 25th of July, we can’t speculate how the trend is going to be. The smart move would be to refinance your house mortgages now by considering the present mortgage characteristics.


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