Low Rates Cause Surge in Refinance Requests on Zillow Mortgage Marketplace

Low mortgage rates are causing many homeowners to consider refinancing their mortgage. As mortgage rates dropped below 5 percent, Zillow Mortgage Marketplace saw a 39 percent increase in refi requests for the first half of October versus the first half of September. In fact, the number of refinance requests made up more than half of all consumer loan requests earlier this month. Compare that to the first half of September, when refinance requests made up only 41 percent of requests.

Today’s average 30-year fixed mortgage rate of 4.9 percent is now 60 basis points lower than it was in June, when the 30-year fixed rate was 5.5 percent, the highest level this year. That means that on a $200,000 loan (assuming a home value of $250,000) the monthly prinicipal and interest payment would now be $1,064.42 versus $1,141.61 for the same loan in June, saving a borrower $27,788.40 over the life of a 30-year loan.

If you’re interested in trying to take advantage of these low rates, remember it’s imperative to shop around to find the best loan and the best lender for your situation.  And keep in mind that Zillow Mortgage Marketplace recently launched a Break-Even Point graph to help borrowers answer the most common question of all:  Does refinancing make sense for me?