When my wife and I were shopping for our first home, mortgage rates were slightly above 5%. When we submitted our offer, rates dropped and we quickly locked in 4.625%. We were happy that we were borrowing "cheap money. However, after a few months of being a homeowner, rates dropped and we refinanced to 4%.
Due to the corona virus, political instability, and a rollercoaster-like stock market, The Federal Reserve decided to cut the interest rate. This caused mortgage rates to drop to an all time low.
I've been reaching out to past clients. My lender and I were able to help analyze each client's situation. Currently, three of my clients decided to proceed with their refinance last week. And yes, one of my clients locked in a sub 3% mortgage rate! This was a 30 year, conventional loan
The benefits of refinancing is more than getting a lower monthly rate. Refinancing could allow you to pay less interest over the life of the loan and it could remove mortgage insurance. For the latter, a past client bought a condo in 2019 and her family did a full remodel. By improving the unit, the appraisal came in much higher than we expected. This increased their equity and it removed their mortgage insurance.