This week, I’m talking about the amazingly low mortgage rates out there right now, and helping you answer the question: should I refi now? 

Today, I’m talking about the incredible opportunity with low mortgage rates and putting this all in context historically. 

Many of you listening are close to retirement. If you bought your first house 40 years ago in 1980, your mortgage would have been about 12-13%. If you bought in 1990, your mortgage rate would have been about 9-10%, and if you bought a house in 2000, your mortgage rate would have been about 7%. 

Interest rates on mortgages didn’t drop below 5% until 2009, and they’ve never been this low. Right now, you can lock in a 30-year mortgage for around 3-3.5% and a 15-year mortgage for under 3% right now. 

So if you are looking at buying a house or you are in a position to refinance because you have income, good credit, and equity in your home, it’s seriously an opportunity of a lifetime with rates this low. 

Forgive me if I sound like one of those mortgage lender commercials, but believe the hype because that’s the reality. When housing makes up one of your largest monthly bills and you have an opportunity to reduce that monthly bill and lock in that lower bill for 15 or 30 years, you need to at least do your research and look into whether this makes sense for you. Who knows how much lower rates will go or how long they will stay this low, so don’t get greedy and try to time it and wait and see if they go lower from here. We likely have several months of lower rates ahead, but as the economy improves when we finally come out of this COVID cloud, rates are likely to go higher. 

Interest rates are like death and taxes - no one can predict what will happen next, so do yourself a favor and look into a refi while corona is wreaking havoc on all of us. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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