Mortgage Rate Trend Alert

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In case you haven’t heard, expert opinions agree mortgage interest rates could drop significantly (some say reaching below 6%) by the end of 2024. While the market is currently around 7%, now is the time to start considering whether you want to refinance this year. So if rates tick down, you’ll be primed for action.

Here are some things to consider if you think a refinance is on your horizon:

  • 1% is the magic number. A refinance is usually recommended if you can get at least 1% less on your mortgage. As we move through the year, more homeowners are going to see they fall into this camp.
  • Savings are savings. Whether you’d like to pay down high interest personal or credit card debt, reduce your monthly mortgage payment or pay down your mortgage more quickly, refinancing could mean more cash for you to allocate in other ways.
  • Cut costs. Regardless of your down payment, if you have an FHA loan, you’re required to pay mortgage insurance for the life of the loan. If you have enough equity, you could qualify for a conventional loan and get rid of that added cost.
  • Start the conversation. Connect now with a trusted mortgage lender so they can help you weigh your options, be prepared and keep an expert eye on the market so you can strike quickly if the market reaches your target rate. And just for fun, you can check out this refinance calculator. Simply plug in the numbers for your current and desired loans and see the potential difference in your payments. You might be surprised how big an impact a seemingly small rate decrease could have.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.