Low interest rates lead some homeowners to refinance
Interest rates are dipping to a near-historic low, meaning refinancing or even buying a home has become more attainable.
Matt Brei, Branch Manager at the Paramount Residential Group in Lincoln said the last several days at the office have been pretty busy because his clientele is focused on refinancing. He said anyone who owns a home should consider doing the same.
"Get a better interest rate, a lower monthly payment, to pay their loan off sooner with a lower interest rate," said Brei.
Recent drops in the stock market led to the lower interest rates, which is giving buyers the power to afford bigger houses or pay off their mortgages faster.
"Maybe they've been paying on their loan for a few years and they had a 30-year loan," said Brei. "We'll take it down to a 15-20 year loan at a lower interest rate and they'll be making about the same payment because rates are that much better now than they have been."
The interest rates are down to as low as 2.5 to 3 percent.
"Housing is amazing right now," said Brei. "If rates stay low like they are, housing will continue to grow, so it's still a good investment to buy a house."
Refinancing isn't just good for the bank and the homeowner. Lincoln Realtor Matt Kirkland said it's also positive for Lincoln's economy.
"They will need new carpet, new roofing," said Kirkland. "They will need new appliances that need to be purchased, home inspectors that get hired to inspect homes, plumbers to fix leaks. It's a huge boom for the economy to have a strong real estate market going."