Blog Stories The Market in Focus: Interest Rates Drop – Should You Consider Refinancing?

The Market in Focus: Interest Rates Drop – Should You Consider Refinancing?

By Aryne + Dulcinea, February 13, 2020

By Aaron Nawrocki, Capital M Lending

With fears of the Coronavirus spreading and affecting the global economy, investors are taking their money out of equities and putting them into fixed income securities. That has driven Treasury and spurred a mortgage interest rates drop. Currently, mortgage interest rates are at a three-year low. They also reached a 49-year low for the month January. It’s not just that rates have fallen, it’s that they’ve fallen so precipitously. Today’s average 30-year fixed rates in the mid 3’s are fully 1% less than average rates 12 months ago.

Meanwhile, Portland’s real estate market has stayed strong, with values continuing to rise. This combination of increasing values and current interest rates drop means that many homeowners could benefit from refinancing.

Here are some key reasons to refinance:

  • Lowering your interest rate and monthly payment
  • Shortening the term of your mortgage to minimize the total interest paid
  • Removing or reducing mortgage insurance
  • Consolidating debts – first and second mortgage or consumer debts
  • Taking equity out for home improvement or repairs

Generally, refinancing will involve closing costs built back into the new mortgage. That means that it’s important to keep the new mortgage long enough to recognize a financial gain. We like to see homeowners recovering their closing costs within 12-18 months. The short recovery period makes it more likely that refinancing would be a financial “win” even if it was not the homeowners’ forever home.

When rates decline quickly, we typically see them stay at their lows for 3-5 weeks before they rebound – so this could be a unique opportunity. If you purchased your home in the last three years and owe more than $250,000, it may pay off to refinance to today’s lower rates. Depending on your home and situation, an appraisal may not be required. If you’re interested, reach out to us and we’ll get you numbers to review. The only input we’d need is a copy of your most recent monthly mortgage billing statement. For more information on the current interest rates drop, feel free to give me a call at 503-445-9525 if I can be of assistance!


Aaron Nawrocki has over 20 years of direct experience overseeing mortgage and loan processes, working to provide clients the market insight and lending expertise required to make informed decisions


Aryne + Dulcinea

Earth Advantage Principal Broker | Earth Advantage Broker | ADU Specialists | OR


Click here to get to know Aryne + Dulcinea!

Aryne + Dulcinea are full-service, high-producing agents, who understand how to navigate the unique challenges facing the Portland real estate market. The secret to their success is in their professionalism and complementary skill sets. In 2012, Aryne + Dulcinea saw an opportunity to combine their creative and technical wisdom to create a values-driven, full-service agency unlike any other. Expert negotiators and project management mavens with a strong background in creative marketing, Aryne + Dulcinea serve as fierce advocates for their clients. 

Their passion for real estate relates closely to their commitment to the Portland way of life, which entails a dedication to sustainability and appreciation for all things local. As Earth Advantage Brokers and ADU Certified Specialists, Aryne + Dulcinea are savvy in all aspects of alternative living practices—from versatile housing additions, green building practices, and revenue-generating strategies. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching you real estate goals.

Aryne greets working with clients throughout Portland with open arms. Licensed since 2005, she appreciates the ever shifting desires her clients have as they move through their real estate goals. Investigative genius on her side, Aryne will strive to bring you the results you desire.  When not working for you, Aryne is a constant cheerleader for her son and daughter’s pursuits on the basketball court and on the ballet stage! She practices yoga, hikes, loves to walk and explore Portland neighborhoods, reads, and delights in soaking up everything Portland has to offer! 

Dulcinea thrives on working with clients with a range of real estate goals.  Oregon born, with a design and an award-winning professional background, Dulcinea is steadfast when it comes to working for her clients and has a keen eye for properties that best serve client objectives. Licensed since 2013, Dulcinea works in and around Portland.  A mother of two and wife to her high school sweetie—in her free time she stays busy with her family, travel, community activism, exploring the outdoors, curating art shows, and dreaming big!

Read More
  • T: 503-380-5124
  • F: 503-961-8224

You might also enjoy

Just Listed: Elegant Craftsman in Colonial Heights

Natalie Strom

JUST LISTED 2731 SE Harrison Portland, OR 97214 Offered at $995,000 _________________________________________________________________________________________________ Drop-dead gorgeous 4-level American...

Is Airbnb Having a Detrimental Effect on the Portland Housing Market?

Shannon Dooley

Written by: Sorcha Porter, Short Term/ Mid Term Rental Specialist “No thanks, encouraging people with wealth...

What Makes the St. Johns Neighborhood Special -Part 2- Coffee Shops

Jasmine Deatherage

Coffee shops are community! Every time I head to a new city or even just a...

A Diamond in the Rough: Buying a Home in SW Portland

Carrie Struss

What happens when a house needs too much work for the average buyer? Answer: an architect...