“The average interest rate on a 30-year fixed mortgage reached 4.01% for the week ending Sept. 29, the lowest ever recorded on the Freddie Mac survey,” writes Jon Prior on HousingWire.com. The 15-year averaged 3.28% for the week.
This gives buyers more purchasing power. At 4.5%, you can borrow $197,300 with a $1000 monthly payment; at 4.0%, it becomes $209,460.
Should I refinance (again)? Maybe. If you have a $400,000 loan at 5%, your payment is about $2150 a month before taxes and insurance. Refinancing to 4% would knock it down to $1909 a month, a $241 savings. Every month. Even if your current loan is 4.5%, you’re going to save over $100 a month.
What if you don’t have enough equity in your home to refinance? Some people are finding that they can refinance, at a slightly higher rate that incorporates their closing costs.
What about that 15-year thing? If you’re feeling flush and in a hurry to pay off that mortgage, the 15-year at 3.25% would make your monthly payment on a $400,000 loan “just” $2811 a month, and you can schedule a mortgage-burning party for late 2026!
Will rates go down further? Maybe, who knows? If the 30-year rate drops to 3.5%, that would cut the monthly payment by $113, to $1796.
If these rates seem good to you, call your favorite lender now, or call and we’ll put you in touch with a great one. That’s how we roll!
Cynthia’s number is 206-276-8292 and Mack’s is 206-795-9271.
Have a great refinancing day!
Disclaimer: the numbers are for illustrative purposes only, we’re not in the mortgage business, and we’re not offering loans at any rate to any body or guaranteeing that our calculations are correct!