Annual interest rates continue to hover at historically low rates of 3—4.5 percent. For people who purchased a home in the 1990’s or 2000’s and are pay-ing interest rates of 5.5%-7.5%, this could be a great time to consider refinancing your home loan.
By refinancing your mortgage (home loan), you can replace your current loan with a new one bearing better terms. Refinancing can result in lower monthly payments and save you thousands of dollars a year. For example, if you reduce the interest rate of a 30-year $100,000 mortgage by just 2% — for in-stance, from 6.5% down to 4.5% — you can save over $45,000 in total interest payments.