Obama Refinance Plan – Mortgage Interest Rates Under 5% in February?
Posted on | January 21, 2010 | No Comments
The Obama refinance plan was created to help homeowners to refinance to lower mortgage interest rates. At the present time there is an opportunity to refinance your mortgage rate under 5% in late January or early February. On January 20th, 2010 the conventional 30 year fixed rate mortgage is around 4.83%. This is getting very close to 2010 lows as the low for the year has been 4.8%.
The 10 year treasury rate yield has dropped significantly since the begining of the new year. In early January the 10 year yield reached as high as 3.85% but has moved to a new 2010 low of 3.65% today. The next level of support is around the 50 day moving average of 3.55%. With a drop to the 50 day moving average mortgage rates are likely to move below 4.75%.
The all time low for the 30 year fixed rate mortgage is 4.49% and this was quoted in late November of 2009. It is unlikely that we will see an all time low in the 30 year fixed mortgage but anything is possible with the Federal Reserve Bank still purchasing mortgage backed securities. This purchase program is set to conclude at the end of March 2010 and could push mortgage rates higher in the spring of 2010.
If you have a signifcant amount of equity in your home and you have a credit score above 740 then you could greatly save by refinancing. WIth the conventional 30 year fixed mortgage rate being under 5% you could save hundreds of dollars a month by refinancing in late January or early February. Even if you can’t get rates this low you could still benefit by refinancing today.
If you can save one full percentage point on your mortgage interest rate then you should consider refinancing while rates are still low. By saving one full percentage point you will not only cover refinance costs but you will also see a large amount of savings on your monthly mortgage payments.
Author: Alan Lake
Comments
Leave a Reply