Financial groups urge customers to refinance

Financial groups are touting a recent dip in interest rates and urge customers to consider refinancing their mortgages in 2015.
As of Friday, Jan. 9, 30-year mortgages, up to $417,000, were at a fixed rate of 3.625 percent with an annual percentage rate of 3.665, according to loan rates listed on Washington Trust Company’s website. Santander Bank listed its 30-year fixed rate mortgage at 3.75 percent with a 3.91 APR and Citizens Bank’s rate was 3.875 percent with an APR of 3.902 percent, according to the banks’ websites.
Washington Trust’s announced it rate drop one day after President Barack Obama announced plans to shave insurance premiums on some federally issued mortgages, which the U.S. government predicts could make homeownership more affordable for more than 2 million Americans, according Housing and Urban Development Secretary Julian Castro.
Homestar Mortgage, a mortgage company at 220 Smith St., Providence, also announced a dip and said increasing property values and the expansion of mortgage products is why it is urging people to take advantage of the lower rates and save on interest.
“Through lower or no PMI (Private Mortgage Insurace) programs, homeowners can consolidate their first and second mortgage into one, low fixed rate loan – without 20 percent equity or PMI,” Homestar wrote in an email.
Mortgage rates were low in 2014, but mortgage groups suspect they could increase as the economy continues to recover and the Fed is expected raise interest rates.

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