Mortgage rates at the tail end of September fell to 3.54%, the lowest they’ve been in three months. While it’s not as low as some of the historic lows at the end of 2012, when long-term home mortgage rates were as low as 3.31%, it’s still quite good, given our current economic lot.

When home owners hear about numbers this low, many of them may think about home refinancing. And with good reason. You can restart a borrowing program with low rate mortgages instead of the initial ones you signed up for, which can save you a lot of money on accrued interest over the years. You can also swap adjustable-rate mortgage loans for fixed-rate ones, or vice-versa.

Other times, people turn to home refinancing as a way to get a shorter loan. Perhaps you first bought your house with a 30-year mortgage plan, but five years in, you find yourself with a better job. You might consider switching to a 15-year plan, which again, will save you a lot on interest over time.

On the other hand, sometimes a home refinance is necessary for less fortunate reasons. Home owners may need to consolidate debt or tap into equity in order to finance another large payment.

No matter your reasoning, now is a great time to consider refinancing because mortgages rates seem to be hovering around comfortable lows. There’s no great fluctuation from day to day or week to week, which means the market is stable.


At the same time, it’s unlikely rates will get any lower in the near future. The Federal Reserve has held off so far on raising interest rates, but probably not for very much longer. Expect a government-mandated hike by the end of the 2016 calendar year, or shortly into the new year.

Need help working out a refinancing plan that’s right for you? Talk with a mortgage lender — in fact, talk to several — about your options and rates to find a way to take advantage of today’s robust mortgage market. Free up some cash flow today, or work on saving it for a rainy day.