WILLIAMSVILLE, N.Y. - Mortgage rates are now at historic lows, and more and more people are refinancing their homes; in the process, some are saving tens of thousands of dollars.
According to Freddie Mac, this week 30-year fixed mortgage rates hit 3.96% and 15-year fixed mortgage rates fell to 3.26%. Both are the lowest ever recorded.
Molly Herud, an assistant vice president with M&T Bank's mortgage division said more and more people are exploring a possible refinance.
"Tremendous increase, tremendous," Herud said. "like can't get to these people fast enough."
Herud said some are choosing to refinance to lower their monthly payment, but the majority are refinancing to lower the term of their mortgage. For instance, a 30-year mortgage is being traded in for a 15-year mortgage, and in many cases, the monthly payment isn't going up or is increasing by a small amount.
"This is a permanent reduction in interest rates for as long as you're going to be there," Joe Curatolo with Georgetown Capital Group in Williamsville said. "That's phenomenal."
Herud said each customer is different, but in many cases, people are able to save tens of thousands of dollars.
The catch is that very good credit is now needed in order to qualify. That's vastly different from several years back, when the financial market nearly collapsed due to too many Americans with mortgages they couldn't afford.
Herud said it only takes between 10 and 15 minutes on the phone with a mortgage officer to learn whether or not refinancing is a good option.
Also, check out this online calculator to see if refinancing your mortgage could save your family money.