Wednesday, February 22, 2012
WSJ Wednesdays - Refinancing
This week's edition of WSJ Wednesday is inspired by an article found in the February 4 - 5, 2012 Weekend Investor section. Jessica Silver-Greenberg's article, "Refinancing: Time to Act?" discusses historically low interest rates and how some experts believe its a mistake for homeowners to wait too long to take advantage of them and refinance. Included with the article, is a table of "Average rates on a 30-year fixed-rate mortgage" from 2010 - 2012.
Rates were 3.87% for the week ending February 2, 2012. The current national average according to ERate for a 30-year fixed conforming mortgage is 4.018%. This seems to hold up what some economists say that with a slightly improving economy rates will tick upward.
Refinancing isn't right in every situation. Homeowners have to weigh factors like closing costs and the outstanding balance on their current mortgage. My husband spent months going back and forth with potential lenders looking for the right rate and terms before we refinanced last month. In the end, though we are now back to a 30-year loan, we are saving hundreds of dollars a month and lost no equity.
Have you considered refinancing? Have you opted to rent a single family home instead of buying one? What is it like in your area? Is the economy improving?