In wake of the coronavirus, mortgage rates have been declining week-by-week. As a result, Nick Parent of Vermont Mortgage says that he is seeing more homeowners take advantage of these lower rates through refinancing, according to WCAX.
"Parent says people who bought homes and got mortgages in the last few years when the interest rates were higher are now switching to lower rates, paying tens of thousands of dollars less over the course of their mortgage," according to the report.
"Depending on the loan amount, that could save someone anywhere from $100 to $300. The one I closed today, it was actually $400 a month that they were saving because of the size of their loan amount, so it's real money," said Parent.
The report even cites an example of a family that is saving $300 a month after going from a 30-year with an interest rate in the fours to a 20-year in the mid-threes. Parent does caution those who are thinking of moving, according to the report. He believes that the cost of refinancing is not worth it if you don't believe you'll be in the home for the next one to two years.
To learn more about how the coronavirus is affecting home refinances, click here.