Interest rates are at rock bottom, pushing mortgage refinancings to a new post-crisis high. Lenders extended over $2.4 trillion in home loans last year, the most since 2006, reports The Wall Street Journal.
That’s a positive sign for the economy. People who save money on their mortgage payment are likely to go out and spend that money on other goods and services, boosting economic activity.
But how about you? Is now a good time to lock in those low rates and refinance your mortgage?
We talked to reporter Ilana Polyak of CNBC about the pros and cons of refinancing, and whether low rates represent an unbeatable opportunity you can’t afford to pass up, or a money trap just waiting to trip you up.