Just in case you’re returning from an early summer vacation where you’ve implemented a complete media blackout, or you’re one who’s relatively oblivious to financial news, it might be a good time to consider refinancing your mortgage (if you’re not severely underwater).

As of this week, the 30 year fixed rate mortgage hit historical lows around the 4.5% mark.* Similarly, the 15 year fixed rate mortgage hit the 3.97% mark.*

With China still buying U.S. Treasury Bonds at a good clip, and the Federal Reserve far too fearful to raise interest rates (fearing a double dip in housing), mortgage rates could continue to fall a bit more.

But with rates like these, it’s a bit of a gamble to continue to wait around and pay 5-6% on a fixed rate or adjustable rate mortgage, when you can lock in interest rates at a historical low saving you a hundred bucks a month (or more) and tens of thousands of dollars over the amortized lifetime of your mortgage.

Moreover, if you’ve owned your home for a number of years and your monthly cash flow has improved, it might be worth considering switching from a 30 year amortizing period to a 15 year amortizing period. The pros and cons between a 30 year mortgage and a 15 year mortgage can be debated at length, but if you have gotten a few raises over the years and your cash flow can take the hit, it might be worth running the numbers. You’ll get a lower interest rate, pay far less in bank profits, and you’ll own your home free and clear much sooner.

* Source: Zillow.com

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