Subprime Blogger

Your Mortgage News Source

Bank of America Refinance Mortgage Rates – Low Interest Rates in January 2010?

Posted on | December 25, 2009 | 1 Comment

Bank of America refinance mortgage rates have been very close to all-time lows for much of 2009. At the end of November the 30 year fixed mortgage rate was around 4.5% which was the all-time low since mortgage data has been collected by Freddie Mac. This data only goes back to 1971 but it still significant as it is a psychological level that encourages homeowners and future homeowners to lock in to a low rate.


Since the end of November, mortgage interest rates have moved up to around 5% on the 30 year fixed mortgage rate. Much of this is due to the fact that the 10 year treasury rate yield has skyrocketed since the beginning of December. On December 1st the 10 year treasury rate yield was at 3.2% and recently we have seen the yield as high as 3.75%. There is a very strong correlation between the 10 year yield on 30 year fixed-rate mortgages and this is why mortgage rates have moved up.

If you have been thinking about refinancing your current home then now might be the time to get started. If you continue to wait you are going to find there to be a swarm of mortgage refinance applications at your lender. At the beginning of each year the number of mortgage refinance applications greatly increases as families are assessing their financial situation.

There are many mortgage lenders that are currently advertising mortgage rates well below 5%. It’s extremely important that you understand that you must have equity in your home and a decent credit score to get these low refinance rates. If you find that you have a credit score well below 650 and you are under water in your home then you can forget about a low refinance rate in the current economic environment.

Before deciding on submitting a refinance application it is very important for you to understand where you are financially. Just because mortgage interest rates are low does not mean that you need to refinance your home. If you have little equity in your home, very little in your savings, and a bad credit score then it is not likely that you will benefit from the mortgage refinance process. It would be a better idea to improve your credit and increase your savings account before attempting to refinance.

Author: Alan Lake



Category: bank of america mortgage rates

Comments

One Response to “Bank of America Refinance Mortgage Rates – Low Interest Rates in January 2010?”

  1. kwan
    December 26th, 2009 @ 5:09 am

    secondary markets typically will price their rate sheets from the activity of mortgage securities sales. what correlation do 10 year treasury yields have to mortgage rates especially if sometimes they react in exact opposite manners?

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!