Should you refinance your mortgage? Here are three signs it's time, real estate experts say

"Because rates shot up so much over the past few years, refinancing activity has mostly disappeared," said Jeff Ostrowski, a housing analyst at Bankrate.when the Federal Reserve could begin cutting interest rates, but many homeowners who took out a mortgage in recent years — as rates hovered between 6% and 7%, and evenThanks to those high mortgage interest rates, refinance activity in 2023 was at the lowest level in 30 years.

I opened two accounts to help grow my savings. Here's what I learned as a Gen Z personal finance reporterHowever, fewer owners might refinance their loans as they might still be locked in on historically low rates or may see little incentive to do so, the mortgage buyer forecasts.

"There are costs associated with it, but the costs are low in comparison to the savings over the long term," said Zhao. The average closing cost for a refinanced single-family mortgage was $2,375 in 2021, up 3.8%, or $88, from $2,287 a year prior, according to CoreLogic's ClosingCorp, aRefinancing can make more financial sense if you are able to pay those upfront instead of rolling the expense into your new loan. Some lenders may require a higher interest rate if you finance closing costs, plus you'll be paying interest on those expenses for the life of the mortgage.

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