Want to take advantage of low mortgage rates? Here's how to assess the best plan for your budget

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Want to take advantage of low mortgage rates? Here's how to assess the best plan for your budget
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Mortgage rates are low. Here's how to figure out the best plan for your budget. investinyou (In partnership with acorns.)

The recent drop in mortgage rates may have you dreaming of buying a new home or refinancing your current house.Housing sentiment has surged thanks to those low rates, according to government-sponsored mortgage giant Fannie Mae. Its monthly survey, released Monday, shows that positive sentiment in March jumped to the highest level since June — which was just below the record high.

Rates have since fluctuated slightly. The average 30-year home loan rate is now 4.07%, according to Bankrate's latest survey of the country's largest mortgage lenders on Monday. Getting preapproved for a loan by a reputable bank or mortgage company will allow you to find how much you can borrow and what the best loan is for your situation.

When it comes to whether you should refinance your current mortgage, Chase's Bailey said he generally uses the"half point rule," which means the new rate is at least 0.5 point lower than your current one.

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