Lower Your Mortgage Rate and Eliminate Your Mortgage Insurance by Refinancing Now

Recently, mortgages rates dropped from 4.28% to 4.08% according to a report from Freddie Mac. This is the biggest weekly drop in over a decade.

It’s easy for consumers to follow where mortgage rates are headed through the 10 year Treasury note as they’re closely intertwined. In December 2016, rates hovered around 2.48%. A CNBC article published last week about the rate drop stated that home buyers are still facing high home prices and low housing supply. Home price gains may be shrinking, but some markets are still unattainable for most first time home buyers. 

There’s a very good chance you’ll be able to eliminate your mortgage insurance as home prices have increased significantly since the end of 2016

Only a few months ago rates were at 5%, slowing refinancing and the housing market. Home buyers that bought a home between October 2017 and January 2018 and put less than 20% down could reduce or potentially eliminate their mortgage insurance through refinancing. Rates are significantly lower since the very beginning of 2018 where the 10 year note was around 2.72%.

Rates have gone down even further as seen in the chart below. There’s a good chance that your rate could decrease when you refinance whether you’re paying for mortgage insurance or not.

If your credit has improved or worsened in recent years you could be impacted by the change in rates. Fannie Mae and Freddie Mac adjusters are responsible for the update in mortgage rates based on loan level pricing.

Reach out to your local On Q Mortgage Consultant if your credit has improved since buying your home.

Almost everyone could benefit and receive a higher LTV due to the increase in home prices throughout the past few years. With mortgage rates making this historic drop, there isn’t a better time to buy or refinance than now. Contact On Q or your local Mortgage Consultant to see how much you can save.