FHA Refinance Loans, Is It The Time To Refinance Your Home ?

Is it the time to refinance your home with FHA refinance loans? The average 30-year fixed mortgage rate is down to 5.1% which is a 37-year low according to mortgage giant, Freddie Mac.

Mortgage rates have fallen for nine consecutive weeks, sending more homeowners to their lenders, looking for a better deal.

Some Experts say, it is the right time to refinance. When?
* If you have equity in your home, meaning you don’t owe more on the loan than the house is worth.
* If you have excellent credit.
* If the new rate is at least one-percent lower than your current interest rate.
* And if you plot on staying in your home for at least two or three more years.

But be aware, there are some fees involved.
Including your appraisal and your title insurance, you should expect to pay around $1,500 for a conventional loan. If you have an FHA loans, you can expect to pay as low as a $1,000.

The interest rate is at 5.1%, but that doesn’t mean everyone trying to refinance with FHA refinance loans will get that rate.

Credit scores play a huge role in the mortgage interest rate so those with poor credit may not qualify for the lower interest rates.

If you’re considering refinancing, call your lender first and get a quote.

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