Over the past year we have seen a historic drop in mortgage interest rates, with the lowest falling to a 2.16% for a 15-year fixed-rate and a 2.65% for a 30-year fixed-rate. This drop in rates began a wave of refinances with homeowners trading in their higher interest rate for a smaller one, saving themselves money along the way.
Now, almost a year after the COVID-19 pandemic began and 3 months into 2021, we are starting to see rates creep back up. Some homeowners are wondering if they’ve missed their chance to refinance as rates have risen over 0.20% since December.
So, did you miss your chance to refinance? We don’t think so! Millions of Americans are still sitting on mortgages with rates above 4%. The current market is still well below that number, meaning you can still save yourself money with a refinance.
Should you refinance?
Deciding to refinance depends on your current situation. First, take a look at your current interest rate. If you plan to stay in your home for a while and can lower your interest rate by 1% or more, refinancing is a great option. Rates are still historically low and it’s still a great time to take advantage of them.
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Originally published March 4, 2021, updated August 22, 2022.