Refinance Rates Dip Under 4%

Mortgage rates dropped in the second week of October 2014 leading to an increase in refinancing activity from homeowners in an effort to save money. The current 30 year fixed rate mortgage is just below 4 percent which is the lowest it has been in the last four months. Fixed rate mortgages dropped to 3.97% compared to 4.28% 12 months ago.

It's generally recommended that home owners refinance if they can save at least one percent on the interest rate. In some cases the monetary savings can be substantial even if the refinance rate is just half a point lower. More than 10% of current homeowners with fixed 30-year rates are currently paying over 5% on interest rates which means they would be able to save a significant amount if they choose to refinance. Take a look at current refinance rates at loanDepot for 30, 20 and 15 year fixed mortgages.

Refinancing may not be ideal for everyone. For those who have a small loan balance or plan on selling or moving out soon refinancing may not be the best option. In addition, a solid credit score is required in order to qualify since lending standards are currently tight.