From staff reports LAWTON – After hitting historic highs in October 2023, mortgage rates have now fallen to an average of 6.35% for a 30-year fixed rate, according to recently released data by Freddie Mac.
Homeowners who locked in a mortgage rate within the last couple of years may be watching for an opportunity to refinance if rates continue to decline, especially if the Federal Reserve cuts rates in the near future. Even a 1% drop can save a homeowner hundreds of dollars a month, depending on their financial situation and needs.
“Refinancing to a lower mortgage rate can be a strategic move to help you meet your personal and financial goals,” said Chris Toomey, Mortgage Loan Manager. “There are several things to consider when making that decision but having a good understanding of your finances and goals will help you determine if and when refinancing makes the most sense for you.”
Toomer shared three tips for homeowners who may be considering refinancing: undergo a financial checkup, determine the goal of your refinancing, and start talking to mortgage lenders early.
First, look at your budget and see what you could pay off to lower monthly expenses. You may need to reduce your debt-to-loan ratio or raise your credit score. Improving either can help you get the best rate and loan terms possible.
Next, determine your refinancing goals. Are you wanting to reduce your monthly payment, lock in a better rate, get a shorter loan term or remove private mortgage insurance? Once that’s decided, get a total cost analysis of refinancing your mortgage based on certain rates and other costs.
Lastly, speaking to a mortgage lender early ensures that potential buyers are connected with someone who can notify and assist them as soon as rates are favorable.
While it could be easier to refinance with your current mortgage lender, you can explore other options to find the best deal that also meets your needs. For example, some lenders transfer or sell loans to a mortgage servicer after closing. If that's something you're concerned about – or maybe it already happened to you – ask potential lenders if they retain and service their loans.
With more than $26 billion in assets, Arvest Bank is a community- based financial institution serving more than 110 communities in Arkansas, Kansas, Missouri and Oklahoma. Established in 1961, Arvest Bank is committed to meeting the needs of its more than 830,000 retail and business customer households by continually investing in the digital tools and services customers expect. Its extensive network of more than 200 banking locations provides loans, deposits, treasury management, wealth management, credit cards, mortgage loans and mortgage servicing as a part of its growing list of digital services.
Arvest is an Equal Housing Lender and Member FDIC. To learn more, please visit www.arvest.com.