Refinance Home Loan Rates – Mortgage Rates Still Low
Posted on | October 2, 2009 | 2 Comments
Refinance home loan rates continue to stay very low. Average mortgage rates have been below 5% since the beginning of September and it looks as if October is going to be the same way. We saw a very volatile first day of the month as far as mortgage interest rates but that is to be expected because the Fed is going to stop buying US Treasuries by the end of the month which is going to cause mortgage rates to move all over the place.
For those of you thinking about refinancing or buying your first home now is the time to get started on the mortgage application process. If you continue to wait and the end of October nears you might find that mortgage rates will start to move higher. No one can predict with 100% accuracy where mortgage interest rates are going to go but it is likely we will see a slight bounce after Halloween.
Many Americans have had the luxury of refinancing under 5% and they are very lucky. Most current home owners would do almost anything to get a mortgage rate under 5%. If you have a mortgage rate that is over 6% you could save a great amount of money on your monthly mortgage payments. Finding a lender out there that will finance your mortgage should not be a great problem.
Many mortgage lenders are currently advertising mortgage rates well under 5%. It is your responsibility to contact these lenders and go through the refinance process to actually lock in at a very good deal. You might be surprised to find that many mortgage lenders out there will be more than happy to lend you money. The reason for this is the fact that President Obama has creative incentives for these companies and they are taking advantage of them.
With mortgage interest rates being below 5% now is the time to refinance. If you wait until the end of October you might find that mortgage rates are starting to move up. If you continue to wait even longer than that then mortgage rates 6% or above might be reality. Don’t let this happen as you know mortgage rates are low now don’t try to find the bottom, take advantage now.
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Author: Jesse Wojdylo
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2 Responses to “Refinance Home Loan Rates – Mortgage Rates Still Low”
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October 2nd, 2009 @ 2:00 pm
Consider the effect of closing costs before you make the decision to refinance. Ask several mortgage companies to e-mail you a Good Faith Estimate showing closing costs, along with the interest rate. Subtract the new principal and interest payment(not taxes and insurance)from your current principal and interest payment. Divide that number into the amount of closing costs. The answer is the number of months it will take to recoup the closing costs with the lower interest rate/payment amount. How long do you intend to stay in the property? You may decide that the closing costs don’t justify the drop in the interest rate. For more information on the loan application and closing process, as well as money saving tips, see my book “Getting To Closing” (www.CherylLPeck.com). The book contains information I gave my clients during my ten year career as a mortgage broker.
October 7th, 2009 @ 1:44 pm
[...] could be more scary this year if this article about interest rates is correct. There could be spikes the end of October, though rates are great right now. [...]