Still-low mortgage rates ushering new refi wave

The aerospace engineer recently refinanced again, lowering his mortgage rate by 1 percentage point to 3.5 percent.

Mortgage interest rates have remained low for so long, lenders and borrowers alike have been expecting rates would only creep higher.

[...] they've tested record lows.

Since Britain's vote last month to exit the European Union rattled financial markets, average long-term mortgage rates have dipped tantalizingly close to their all-time low of 3.31 percent set in November 2012.

[...] you have to qualify.

Long-term mortgage rates have been running below the two-decade average of 6 percent since 2009.

Since last fall, they've averaged below 4 percent.

The average rate on a 30-year, fixed mortgage was 3.45 percent this week, according to mortgage giant Freddie Mac.

Most loan officers at New American Funding have told borrowers take advantage of rates now, given that they are so close to the all-time low, said Jason Obradovich, executive vice president of capital markets at the Tustin, California-based mortgage lender.

"Saving $200 a month would mean an additional mortgage payment a year, or a significant amount invested into savings compared to how much I'm able to save right now," said Montas.

The current average rate amounts to a savings of about $76 a month on a $200,000, 30-year, fixed-rate mortgage from a 4.09 percent loan two years ago.

[...] the new loan resets the clock to 30 years, meaning even at a lower rate the total interest paid would bump up the overall costs over the life of the loan by about $19,000.

Get quotes from several banks and ask that they put their offers in writing, including an estimate for closing costs and any extras, like loan points paid to lower the interest rate even further.

Lenders typically charge fees for the mortgage broker's services, credit reports, a home appraisal and title insurance.