As mortgage rates keep plummeting to new all-time lows, homeowners are grabbing hold of opportunities to reduce their monthly payments and total interest costs by swapping out their loans.
This year's spectacular drop in rates has doubled the number of mortgage refinance applications compared to 2019, according to the Mortgage Bankers Association. When you refinance, you get a new home loan with new terms, and you pay off your existing mortgage.
Are you a good candidate to refinance? Look for these six signals that the answer is yes.
1. You could do much better than your current interest rate
Pretty much every homeowner is hunting for a rock-bottom rate. Mortgage giant Freddie Mac says average 30-year mortgage rates just dropped below 2.75% for the first time ever, partly thanks to the Federal Reserve's extreme measures to cut interest rates and bring the economy out of its coronavirus recession.