Posted on February 9, 2016 by - Buying a Home, FHA Mortgage, Local Michigan, Refinance

average mortgage rates 2016

Interest rate chart data from Freddie Mac mortgage rates based on US weekly average survey.

Mortgage rates have dropped again officially hitting the lowest levels in one year which is near historic lows. According to the Freddie Mac weekly mortgage survey, rates are as low as 3.72% for a 30 year fixed rate mortgage and as low as 3.01% for a 15 year fixed rate mortgage.

If you have been considering refinancing your mortgage now is the time to lock in a low rate. With falling oil prices, stock investors have been getting nervous and fleeing to more stable and safe investments such as government bonds and mortgage backed securities. This demand to buy bundled mortgages has driven mortgage rates to recent record lows.

Refinance to Drop Mortgage Insurance

In additional to low mortgage rates, home values have been setting records for appreciation. The rise in home values may make it possible to drop mortgage insurance (PMI) which is required on most loans with less than 20% equity.

Refinance to a 15 Year Mortgage

Other homeowners may choose to refinance from higher rate 30 mortgages to low 15 year fixed rates and keep their mortgage payment low. Paying a mortgage off 15 years sooner has the potential to save thousands in mortgage interest.

Refinance from a FHA loan to a Conventional loan

Government backed mortgages, such as FHA loans, are a popular mortgage option for those with smaller down payments. While government loan rates may be low, they typically have higher monthly PMI than conventional mortgages.  Higher property values may allow homeowners to refinance from a FHA mortgage to a conventional loan and save significantly on their monthly payments.

For more information on your refinance options call a loan officer today at 800-555-2098 or request information below.

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