Is it the Right Time to Refinance Your Home?

By Charles Bassett, NEWS 9

OKLAHOMA CITY -- Oklahoma City's mortgage companies continue to hear from concerned customers looking to lower their monthly payments, but as the sluggish economy starts to pick back up mortgage rates are creeping up as well.

It may not be too late to refinance. Experts report if homeowners can knock a percentage point off the current mortgage rate, they should consider refinancing.

With the struggling economy, Darren Wade decided his home mortgage was a little too high, so he's refinancing.

"We were looking for a way to save a little money and free up some cash flow," Wade said. "That was the basic reason."

Wade took advantage for the new low rates and within a few weeks. His interest rate went from 5.75 to 4.5.

"With the one point we took off, it saves us about $150 to $200 a month," Wade said. "That was great for us. We loved that."

Wade got the help he needed at JB Mortgage Loan Services. Currently, the company has a long list of customers looking to refinance.

"It's an awesome opportunity for people to consolidate debt, maybe reduce their years" said Alma Anguiano of JP Mortgage. "Instead of 30, doing a 15 or 20 year note or get out of a variable rate."

If a person is looking to take advantage of the low rates, he or she must have a stable credit history.

"Just as long as they pay their bills on time, and have a minimum of 620 FICA score, they are welcome to call," Anguiano said.

Interest rates are slowly creeping back up. Currently, for a 30-year fixed loan, interest rates run at about 5.3.

Vince Orza with the OCU Meinders School of Business said it's all tied to the housing market. There are more houses on the market nationwide than buyers so that's why there are low rates.

"As the real estate market stabilizes and the houses are bought up that are in foreclosure, then the rates are going to start to go up," Orza said.

Learn more about JB Mortgage Loan Services.