Government Mortgage Refinance Plan – Wachovia Mortgage Rates at 5%
Posted on | December 28, 2009 | No Comments
The government mortgage refinance plan was created to help most homeowners gain access to low mortgage interest rates. At the present time we are seeing Wachovia mortgage rates around 5% on a 30 year fixed rate mortgage. If you have been thinking about refinancing your current home loan then there is a good possibility that you could save by refinancing today.
Before you decide that refinancing is right for you it is important to know just how much money you will save. There many mortgage calculators available online that can help you determine how much your monthly payment will be based on your mortgage interest rate. The general rule is that you must save one full percentage point for it to be worth it to go through the refinance process.
If you can not save one vote percentage point on your home loan rate then you will end up paying more in refinancing costs then you will save by getting a slightly lower mortgage rate. You will not know what mortgage interest rate you qualify for until you go through the mortgage application process. Before you complete this process you will only be given an estimate as to what a lender feels you will get.
Just because you see mortgage interest rates advertised for 5% does not mean that you will qualify for this rate. If you have little equity in your home and a bad credit score then you will not qualify for an interest rate this low. Only the best borrowers out there are finding interest rates this low accessible. If you have a credit score above 740 and a great amount of equity in your home then there is a good possibility of you getting an interest rate around this level.
Wachovia is currently advertising mortgage rates around 5% as rates have bounced off their low. Just a few short weeks ago we saw the 30 year fixed mortgage rate around 4.5%. The all-time low of 4.5% was set on the last week of November and since then we have moved straight up. It might be a good idea to go ahead and submit your refinance application before rates move up even higher.
Author: Alan Lake
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