Mortgage Refinance Rates
The single most influential factor in deciding whether to refinance your mortgage is the current refinance mortgage rate. This rate will determine how much you can save on your monthly payment or by how much you can shorten the term of your loan, depending on your financial goals. Refinance mortgage rates can fluctuate significantly as economic conditions change, but your credit score and the lender will choose can also influence the refinancing rates for which you qualify. Understanding your mortgage refinance rate is the first step to making an informed decision about whether home loan refinancing is right for you.
Factors Affecting Home Refinance Rates
The status of the economy has the largest impact on mortgage refinancing rates. Fundamentally, the laws of supply and demand dictate current mortgage refinance rates. When lenders enjoy a large demand for home loans, they can command higher interest rates without hurting business. On the other hand, when demand for mortgages wanes, lenders must lower home mortgage refinance rates in order to encourage demand. Likewise, inflation will also impact refi rates, as rates tend to jump higher when fears of inflation are present.
However, the economy is not the only variable affecting the refinance home mortgage rate that you receive. Even during times with the lowest mortgage refinance rates, there is no guarantee that you will qualify for the most affordable rate. Your credit rating will have a major effect on the refinance mortgage interest rate you receive, as lenders are most willing to provide the lowest refinance rate to borrowers who represent the least amount of risk. Significant variations in mortgage refi rates can also exist among lenders. Lenders calculate the risk each borrower represents in different ways, which is why shopping around for the best current refinance mortgage rates is crucial.
Tools for Evaluating Refinance Mortgage Rates
Our site will prove a valuable resource to you as you search for mortgage rates refinancing tools. For one, you can research current refinance interest rates using our continuously updated figures. Additionally, you can use tools like our rate refinancing calculator to see if today’s rates are low enough to yield long-term savings based on your unique financial situation. Finally, when you’ve made your decision, you can refinance rates today by requesting free quotes using the form provided on every page of our site. You can view up to five free offers from top lenders that offer competitive refinancing rates.