Government Mortgage Refinance Plan – Refinancing to a Lower Home Mortgage Rate in February
Posted on | January 25, 2010 | No Comments
The government mortgage refinance plan was created to help homeowners lower their overall home mortgage rate so they could save a significant amount of money. At the present time we are seeing 30 year fixed mortgage rates well below 5% which makes it very attractive for most homeowners to refinance their current home loans. If you have equity in your home and a credit score above 740 you would greatly benefit by refinancing.
If you have the previous stated requirements then you are going to find that you have access to mortgage rates very close, and possibly even below, 5%. Most American homeowners would be willing to do anything to get mortgage rates this low so it is very important that you take advantage of this opporutnity before it is gone. Many analysts have predicted that mortgage interest rates are likely to move up starting in the spring of 2010.
At the end of March 2010 the Federal Reserve Bank is going to stop purchasing mortgage backed securities. When this purchase program concludes many economists feel that this is going to push mortgage interest rates up at least .5% to 1%. This would mean that conventional mortgage rates would be right around 6%. This is still not an unattractive interest rate but nowhere near as attractive as 4.85%.
If you stand to save one full percentage point on your home loan rate then it would greatly behoove you to refinance today. If you continue to wait you could be staring at conventional mortgage rates around 6%. Although this is not a horrible interest rate on a home loan it is nowhere near as attractive as the interest rates we are seeing at the present time. Do not miss out on this opportunity.
Author: Heather Best
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