Mortgage Rates Predictions – March 20th – Time To Refinance?
Posted on | March 19, 2009 | 1 Comment
Since there is no daily reported mortgage rate data produced by Fannie Mae or Freddie Mac, I will assume that rates are remotely close to the data that was shown on Thursday at this link. For the second time this year, the weekly mortgage rate average has fallen below 5%. It is likely that it will fall even more next week but I will wait to make that mortgage rate prediction for Monday in my weekly column. Knowing that mortgage rates are now under 5%, is now the time to refinance?
If you have been waiting to refinance, now may be the best time in recent history. The mortgage market fully expects to see an astonishing number of mortgage applications now that the psychological 5% barrier has been broken. Even if rates continue to head lower, if you do not refinance now, your mortgage lender may not be able to assist you in refinancing. It would be wise to be on the first wave of refinance applications. If you wait, you might find that mortgage lenders do not have the capital to refinance your mortgage at a lower rate.
It is hard to imagine that the government would let this happen, but it is possible. Ultimately, if the government sees that you want to refinance, they will do everything in their power to help you get that lower mortgage rate. That was one of the main points of the Obama Making Home Affordable Refinance Plan. I am sure there are many of you out there who have debated getting that refi in the recent past but the closing costs were just too much to actually see a big savings. That may no longer be the case as some lenders are already advertising mortgage rates as low as 4.25%. If you have good credit and your home has not lost a great deal of value, it may be possible to refinance at these historic lows.
Overall, the injection of $1 trillion by the Federal Reserve Bank is great for current home owners. If you have been financial responsible with your money and have a strong financial knowledge base you will save TONS of money. If you are not, make sure to stay up to date with Subprime Blogger as will will attempt to assist you in the refinancing process. We will also continue to make mortgage rate predictions that have been extremely accurate so far in 2009. For answer to other home buying question make sure to check out the link below.
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March 20th, 2009 @ 8:08 am
Another reason to refinance now is that one needs at least 20% equity to get the best rates. With the continuing decrease in home values, many borrowers with top credit may find that they have waited too long to refinance, if the home value decreases enough to drop that equity number.