When The Hubby and I bought our house several years ago, we thought our 6% fixed APR rate was decent. And, for that time, it wasn’t bad, especially since we were new homeowners who couldn’t put down a very big deposit. (We just missed the first-time homebuyer’s credit that went into effect in 2008, which drove us nuts!)
But if you’ve been following real estate or financial news at all, you’ll know that as rates have been dropping and dropping lately, we’re actually sort of getting fleeced now with our once-decent rate. And for someone who will squeeze the last ounce of toothpaste out of the toothpaste roll, that just cannot stand.
Is now the time? Looks like it…
The national average for home loans is hovering between 3-4% APR at the moment (closer to 3.5% at the time I’m writing this), meaning we’re paying a few hundred dollars more per month than we need to be. A few hundred dollars more!
Which is why we’re gathering all our paperwork together to do some serious online research into our refinance options which may include home improvement loans. Because we’ve been on-time with our monthly mortgage payments, we’re both making better salaries than we were when we first bought our house, and we’ve made some improvements to our house over the years, so we should be in a good position to qualify for one of the new lower rates.
If you’ve been in your home for a while (and plan on being in it for several years yet), you may want to look into your refinancing options, too. Who knows how long rates will stay so low, and if you can save hundreds per month, why not do it?
Have you refinanced recently? How much lower were you able to get your payments?
photo credit: Images_of_Money