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Mortgage rates are the lowest they've been in 3 years

Posted at 9:03 AM, Feb 07, 2020

CLEVELAND — Imagine having a couple extra hundred dollars in your pocket every month. It’s possible if you refinance at the current rate, which is 3.55%.

A Cleveland-based Mortgage Lending Company said home refinance applications have more than doubled since last January—making 2020 the strongest start to a year in the last five to seven years.

"I don't think two years ago people would've predicted that interest rates would be below four percent. People were saying we'd be a 5, 5.5% well that's been proven wrong and I don't see it going that high for a while,” said Jeremy Sopko.

Sopko said the coronavirus outbreak and a slow economic growth are contributing to low interest rates.

Data analytics firm Black Knight estimates the average homeowner can save about $270 per month on a 30-year-old fixed loan.

Tom Sasura refinanced in December, about two years after buying his condo. He said rates were great when he bought the condo, but looking at his savings overtime, he said it made sense to refinance.

"It was a no brainer, it really was. It saved me overall thousands of dollars," he said. "It was almost a full point lower than my original loan so it really behooved me to make that move."

Data from the Nation’s Lending said mortgage purchase applications are up by 30% since January 2019.