Is Now the Best Time to Refinance Your Mortgage?

refinance mortgage
refinance mortgage

Some homeowners in their 50s are taking advantage of historic low rates to refinance their homes and score themselves a mortgage-free retirement.

Mark and Jan Sass, 55-year-olds who live in Cincinnati, Ohio, refinanced their home last week to lock in lower rates, Reuters reported. They switched from a 20-year fixed-rate loan of 4.875%, with 12 years remaining, to 10-year mortgage with a 3.5% rate.

"The opportunity to look 10 years out and know that – unless things change – we won't have a mortgage when we retire looked like a smart decision," Sass told the news agency.

A Refi surge

They aren't alone. U.S. banks have seen a recent surge in loan applications that's almost entirely due to refinancing, Greg McBride, senior financial analyst at Bankrate.com, told DailyFinance.