Government Mortgage Refinance Plan – Get Low Mortgage Rates Before March 2010
Posted on | December 30, 2009 | No Comments
The government mortgage refinance plan was created to help homeowners refinance to a lower mortgage interest rate. It is very important that you lock in to these low mortgage rates before March of 2010 because there is a good chance interest rates will start increasing after that time. The Federal Reserve Bank is going to stop buying mortgage-backed securities after March of 2010 which is likely to push interest rates up at least one full percentage point.
If you have been thinking about refinancing or locking into a low mortgage interest rate then it might be a good idea to go ahead and get started today. If you continue to wait you may be looking at conventional 30 year fixed mortgage rates around 6%. At the present time they are right at 5%. Do not miss out on opportunity to refinance below the psychological 5% mark.
Pres. Obama and his staff have worked very hard to keep interest rates as low as possible. Eventually the government is going to have to let markets set interest rates which means that they are likely to move higher. Morgan Stanley analysts have predicted that mortgage rates could move up to as high as 8% in 2010.
It is highly likely that an 8% mortgage refinance is not very attractive to most homeowners. If you cannot save a full percentage point on your mortgage refinance then it is probably not worth the effort. The closing costs and the value of time will exceed the amount of money you save if you can not save one full percentage point.
There many mortgage lenders who are currently advertising mortgage rates around 5%. This is likely to change in the near future so it might be a good idea to go ahead and contact some of these lenders. You do not want to wait until after March of 2010 as there is a very good chance that mortgage interest rates will be well above 6% at this time.
Author: Alan Lake
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