Mortgage Rates: Near All-Time Lows

row of colorful shotgun style houses on tree lined street in afternoon sunlight

If you’ve had a mortgage on your home for a while, no doubt you’ve refinanced at least once. All the craziness that is going on in the financial markets has created yet another opportunity. Last week, mortgage rates dropped to an all-time low of 3.29% for a 30-year loan. Rates are down a bit this week, now at 3.25%. Even more impressive is the 15-year rate. One year ago, it was 3.76%. As I write this column, it stands at 2.625%, a near all-time low.

What Should I Do?

Take a moment to review the interest rate on your current mortgage. If your rate is at least one percent higher than these prevailing rates…AND you plan to stay in your home for five years or more, consider whether it would be advantageous to refinance…again.

I was pulled aside at the mall by a soon-to-be-retiring Birmingham fireman asking what he should do his lump-sum DROP money. He had enough to pay off all debts except his mortgage, which had an interest rate of 4.75%. He stated that he planned to remain in his home long-term and had approximately 15 years remaining on his 30-year mortgage. I suggested he consider paying off all debt and refinance his home using a 15-year mortgage. Doing so will save him thousands of dollars in interest payments. Time is not your friend on this opportunity, as I strongly suspect that rates will continue to move up over the coming weeks and months.

Follow The Welch Group every Tuesday morning on WBRC Fox 6 for the Money Tuesday segment.


Should You Refinance Your Mortgage?

  • Rates dropped to near all-time lows
  • 30-year conventional @ 3.25%
  • 15-year conventional @ 2.625%
  • If your rate is 1% higher, consider refinancing



Stewart H. Welch, III, CFP, AEP, is the founder of THE WELCH GROUP, LLC, which specializes in providing fee-only investment management and financial advice to families throughout the United States. He is the author or co-author of six books, including  J.K. Lasser’s New Rules for Estate, Retirement and Tax Planning- 6th Edition (John Wiley & Sons, Inc.); THINK Like a Self-Made Millionaire; and 100 Tips for Creating a Champagne Retirement on a Shoestring Budget. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Welch Group, LLC (“Welch”), or any non-investment related content, made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. More information about The Welch Group and important Disclosures can be found on our website. Consult your financial advisor before acting on comments in this article.