Mortgage interest rates are as low as they have been in the past two years.

According to Bankrate.com, the prevailing interest rate on June 13, 2019, was 3.97% for a conventional 30-year fixed mortgage.

I recently spoke with Movement Bank loan officer, Michael Curtis, and asked him what this means to him from a refinancing perspective, a renter’s perspective, and the perspective of a homeowner considering making a move in 2019.

Jimmy: If you are a current homeowner, under what circumstances should you consider refinancing?

Michael: In the current market it is a great time to refinance as rates have hit a two year low.  The potential to save hundreds of dollars in interest in your total monthly payment in addition to savings in the tens of thousands over the life of the loan is an opportunity that is here now.

J: If you are a renter, why is now a great time to buy from a financial standpoint?

M: When renting, 100% of all your rent payment goes to someone else.  When you purchase a home it’s what I like to call a “double positive.” With each payment, a portion of your payment goes into your home. Think of it like a savings plan – this is equity that you are building in your home. 

The other positive to purchasing a home is that real estate is an appreciating asset, which means over time the value of your home will continue to increase, so you are riding a wave of appreciation and saving your money in your home.  Real estate is one of the best ways to build wealth due to both of these facts.

J: If you are already a homeowner and planning to move in the next year, why should you move forward with those plans now instead of waiting?

M: Current market conditions are positioned perfectly for someone interested in buying a home.  With rates hovering in the lowest range in the most recent two years, now is the time to take advantage of a market that is primed for home buying and selling.  Individuals can expect lower payments due to the lower rates and potentially pre-qualify for a higher purchase price range within the current market conditions.

Here’s my two cents.

If you have a higher interest rate and don’t plan to move in next 3-5 years, you could potentially save a lot of money by refinancing, especially if you have an interest rate of 4.5%.

Anytime you are a renter and planning to stay in the area for the next 2-3 years, it is a good time to buy; however, now is a great time to be in the real estate market as borrowed money does not get much cheaper than this.

Finally,  if you are already a homeowner looking to move, you will have more potential buyers qualified to purchase your home when rates are low and you’ll get a low-interest rate on your subsequent purchase.  It’s a win-win.

For information about the current housing market and to discuss the process of purchasing a home and selling a house including refinance and new mortgage questions, contact Jimmy Grappone at jimmy@costellorei.com and (980) 298-9385.