Mortgage Rates Plunge, But Who Should Refinance?
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BOSTON (CBS) – Mortgage interest rates are again at historic lows, falling to 3.83% this week, according to Freddie Mac.
Analysts say mortgage rates have not been this low since the 1950’s.
WBZ NewsRadio 1030’s Anthony Silva reports
So who should refinance? WBZ Certified Financial Planner Dee Lee says it’s the best option for someone who’s planning on living in their home for another 10-20 years.
Dee says homeowners who have been in their house for ten years have already paid a lot of interest. She says homeowners start the clock all over again with a new 30-year mortgage, so they’re going to pay that much more interest.
She says the push for refinancing is mainly because banks and other lenders make money from the transactions.
The 15-year mortgage, a popular option for refinancing, dropped to 3.05%.