Following a major spike in inflation — the highest it's been in decades — the Federal Reserve last year elected to raise its federal funds rate to its highest point in 23 years in response. That caused rates for borrowing products to surge, making mortgages, credit cards, personal loans and others significantly more costly than they had been just a few years earlier. Mortgage rates, in particular, rose to their highest level since 2000.
While most experts would advise refinancing if the new rate is 1% lower than the current one, even half a percentage point could produce enough savings to be valuable. Not only would you stand to save money each month, but you could potentially save tens of thousands if dollars over the life of the loan. But with rates already near the 1% threshold, some homeowners may want to act now to lock in that lower rate.Start exploring your mortgage refinance options here today.