{"id":126142,"date":"2021-05-24T13:34:28","date_gmt":"2021-05-24T13:34:28","guid":{"rendered":"https:\/\/precoinnews.com\/?p=126142"},"modified":"2021-05-24T13:34:28","modified_gmt":"2021-05-24T13:34:28","slug":"is-the-mortgage-refinance-boom-ending-what-to-consider-now","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/economy\/is-the-mortgage-refinance-boom-ending-what-to-consider-now\/","title":{"rendered":"Is the mortgage refinance boom ending? What to consider now"},"content":{"rendered":"

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Refinancing your mortgage could still make sense, even as interest rates gradually rise.<\/span> (<\/span>iStock<\/span>)<\/span><\/p>\n

The COVID-19 pandemic unleashed a financial tidal wave that left many Americans struggling in the wake of job losses and reduced earnings. For some homeowners, however, the pandemic did have one positive side effect: record low interest rates for mortgage refinancing. <\/p>\n

As refinancing rates reached historic lows, mortgage refinancing activity reached its highest annual peak since 2003, according to Freddie Mac. In January 2020, the average 30-year mortgage rate was 3.62%, reaching a low of 2.65% by January 2021. As of May 2021, 30-year mortgage rates had leveled out at 3.00%.<\/p>\n

Freddie Mac's latest quarterly forecast suggests that refinance originations will hold steady for the remainder of 2021, despite rising rates, topping $1.8 trillion in total. Here's how to decide if the time is right to refinance your mortgage.<\/p>\n

And if you're ready to refinance now, visit Credible to explore current mortgage loan rates and compare offers personalized for you.<\/p>\n

REFINANCING TO A RECORD-LOW MORTGAGE RATE? HERE'S WHAT TO KNOW<\/strong><\/p>\n

Rates, while not historically low, are still close to it<\/strong><\/p>\n

Mortgage interest rates saw their biggest dip at the beginning of 2021, before beginning a slow but steady increase through the first quarter of the year. While refinance rates are above historical lows once again, it's still possible to save on mortgage interest. <\/p>\n

Whether you're able to secure the best refinance rates may depend largely on your credit history and credit score. In response to the coronavirus pandemic, many lenders tightened restrictions on new mortgage loans and refinance loans for borrowers, shrinking the pool of homebuyers and homeowners who were able to qualify. <\/p>\n

If you were able to maintain good credit throughout the past year or even improve your credit score, that could position you to get a lower interest rate compared with your current mortgage. A positive credit history that includes low outstanding debt, a low debt-to-income ratio and a low credit utilization rate can all work in your favor. <\/p>\n

Checking your credit can help you gauge whether a mortgage refi could be a good move. If you're ready to refinance, visit Credible to see if you qualify for a record-low mortgage refinance rate. Credible makes it easy to compare rates from different mortgage lenders. <\/p>\n

LOOKING TO MAXIMIZE MORTGAGE REFINANCE SAVINGS? DO THIS NOW<\/strong><\/p>\n

The cost savings of mortgage refinancing may be significant<\/strong><\/p>\n

According to Freddie Mac's data, the average homeowner was able to reduce their mortgage rate by more than 1.25%. Even if you missed out on the lowest possible mortgage refinance rate, you could still have an opportunity to save on mortgage costs, from your long-term interest costs to your monthly mortgage payment.<\/p>\n

How much you could save by refinancing your home loan can depend on several factors, including:<\/p>\n