If you’re considering mortgage refinancing with an Adjustable Rate Mortgage you should know ARM refinance rates have fallen to an all-time low. Interest rates on a 30-year fixed-rate home loan edged up last week; however, the average rate on a 5/1 ARM fell to 2.95%, which is a record low. Here’s an article on HSH.com with the scoop on refinancing with one of today’s best mortgage lenders like Amerisave.
Rates on the most popular types of mortgages moved in slightly different directions in the past week, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 4.03 percent. Conforming 5/1 hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.95 percent, a new record low.
With this drop in Adjustable Rate Mortgage refinance rates it’s cheaper to refinance your home loan than allow your lender to reset your ARM. Just make sure you’re not facing a prepayment penalty for refinancing and that you’re not paying unnecessary fees or points.
It’s important to recoup your out-of-pocket expenses from mortgage refinancing from the lower payment amount or you’re leaving money on the table. The more you pay in lender fees or points the longer it’s going to take you to break even.
You can learn more about avoiding unnecessary fees with today’s lowest refinance mortgage rates by checking out my free Underground Mortgage Videos.