Bad Credit Mortgage Refinance – Lower Refinance Rates in 2010?
Posted on | December 31, 2009 | 2 Comments
Going through a bad credit mortgage refinance could save you money in 2010. If you are looking for lower refinance rates in 2010 you are likely to find conflicting points of view. At the present time Morgan Stanley feels that conventional 30 year fixed mortgage rates will move all the way up to 7.5 or 8%. On the other hand Goldman Sachs feels the mortgage interest rates are likely to stay around the same level as the 10 year treasury rate yield will stabilize.
What is important to you is that you get a lower refinance rate on your current home loan. If you stand to benefit by saving one full percentage point on your home loan then it will be worth it for you to refinance. If you cannot save that one full percentage point then refinance costs will outweigh the long-term benefits.
The only way you will know what interest rate you qualify for is is to actually go through the mortgage application process. Until you submit a mortgage refinance application you are going to have to estimate the interest rate you will get. Any estimate is not 100% certain and it may mess up your calculations on how much you will save. There are many mortgage lenders out there who will be more than happy to help you through the mortgage refinance application process.
After you have determined what interest rate you will get there are many mortgage calculators online they can show you how much your monthly payment will be. It is extremely important to sit down and calculate how much you are going to save over time and make sure that that outweighs the costs of the refinance. Many people feel that refinancing will always save you money but that is not always the case.
If you plan on refinancing in 2010 it is a good idea to do it sooner rather than later. The Federal Reserve Bank plans to stop buying mortgage-backed securities after March of 2010. If they follow through with this promise then there is a good chance that mortgage rates could increase at least one full percentage point after March.
Author: Jeremy North
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2 Responses to “Bad Credit Mortgage Refinance – Lower Refinance Rates in 2010?”
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January 14th, 2010 @ 1:17 pm
[...] Subprime Blogger agrees. If you’re going to refi in 2010, quick action makes sense: If you plan on refinancing in 2010 it is a good idea to do it sooner rather than later. The Federal Reserve Bank plans to stop buying mortgage-backed securities after March of 2010. If they follow through with this promise then there is a good chance that mortgage rates could increase at least one full percentage point after March. [...]
March 1st, 2010 @ 9:25 pm
[...] Bad Credit Mortgage Refinance – Lower Refinance Rates in 2010? [...]