Mortgage rates have, somewhat unexpectedly, dropped to three year lows according to the numbers released by Freddie Mac last week. This is prompting a surge of refinance applications, as many consumers do not want to miss the boat this time around.

Mortgage rates are largely affected by the yields on treasury bonds, which in turn are affected by volatility in the overall market. When consumers get anxious about the economy, they pull money out of the market and park it in bonds.

This action causes the yields on the bonds to drop, which is great for mortgages rates – but not so great for your 401k. The trade war with China seems to be the driving force behind this volatility.

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There are many reasons to consider refinancing. For someone who has a rate over 4.50%, (fixed or adjustable) simply refinancing to lower that rate and payment is reason enough. With average rates in the “3’s”, there is substantial savings to be had.

This is also a great time to consider reducing your term by refinancing to a “15 year fixed” where rates are even lower. Many consumers can go to a “15 year” term with just a small increase to their payment, depending on their current rate and how much of their balance they have paid down. The result of such a refinance could save tens of thousands of dollars in interest.

Another solid reason to refinance is to pull out equity from a home to fund home improvement projects or help pay for college tuition. At these rates, no one would call it free money, but it is fair to say it is cheap money.

If you think that you can benefit from refinancing, let’s have a conversation. I am a lifelong Randolph resident, and have been in the mortgage business for 30 years. I can help you decide if this is the right time for you to refinance.

I will always put what’s best for you first and foremost. If the numbers don’t add up, I will advise you against refinancing.  Frankly, it is all about the numbers.

I am available day and evening, and throughout the weekend too. My cell phone number is (201)715-2251 and, my email address is  My NMLS ID is 192707. Don’t miss the boat.