American banks have seen an upwelling in mortgage applications for refinancing. Applications for the week of August 5 rose more than 21% over the previous week, and three-quarters of those applications were for refinancing, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. This makes us wonder, is it time to refinance your Atlanta real estate now?
Mike Fratantoni, MBA’s Vice President of Research and Economics said, “Over the past month, refinance application volume has increased by 63 percent. Refinance applications for jumbo loans increased by almost 75 percent relative to last week.”
Average rates on 15-year fixed mortgages have set record lows over the past few weeks, hitting 3.36% last week.
These historic low rates are allowing some homeowners to reap the benefits of refinancing. Many homeowners who have lived in their homes for a number of years and have positive cash flow can take advantage of these low rates and refinance to put them on track to pay off their home sooner than anticipated. Homeowners should consider their home equity, credit history, time horizon, age and cash flow to determine if refinancing now is worthwhile. Examine the cost of refinancing relative to the savings – if you’ll save two- to three-years of mortgage payments, refinancing now may be smart decision.