Honesty you are in a treat in this low rate refinance environment if you have a secure job, reasonable home equity and favorable credit rating. Anybody who has all of those is likely able to spend a little bit more towards paying off mortgage in half the time. In fact, depending on when you have signed your current home mortgage you might not even need to spend more than what you are paying for a much longer term mortgage.Present 15 year refinance rates are roughly half a percent lower than 30 year rates. Therefore, you would execute three objectives at once by refinancing now. Obvious ones are to reduce your mortgage rate and term. The other one is to secure these great rates for the rest of the mortgage term because they are really low at the moment. Who knows when these low rates offered by lenders again, maybe you never see them at all.Whilst you have the means it is recommended to put that money in your home in this market environment. House valuations may be low at the moment, nonetheless, keeping the money on your home is still the secure option for people who are not in business to turn around capital fast and make money several times over. Holding the money in the bank does not positively pay much and stocks are still really risky.Having a home mortgage free would be quite handy when you stop working and your income comes down. It may be that just about the time you pay off your home loan you would have to think about college fees for your children. Whatever the future may bring, with the equity safely reserved in your home you could have much confidence in your capability to cope with life’s unforeseen turns. Have a little search to determine what mortgage refinance rate offers are out there for you.
Looking for the lowest mortgage refinance rates? Then read this interesting piece of info.Mortgage rates dipped to another new low this week – 4.42 percent on a 30-year loan. That’s the lowest since Freddie Mac has got since 1971. So, yes, if you are thinking of mortgage refinancing, this is the right time. Rates may go lower in the next few weeks but no one really can guess. By the time, they hit rock bottom, people may not realize it.The general perception among most economists is that the sluggish US economy may just gather steam and the interest rates may rise. If you do not lock in now, chances are so much that you will be kicking yourself on the back in the next two years for not taking the bus now. Mortgage interest rates are quite hard to predict. The Mortgage Bankers Association forecast last week that 30-year rates will be at 5 percent a year from now, and 5.8 percent in mid 2012.If you are in a position to refinance your mortgage, you should count yourself lucky. In St. Louis, 18 percent of homes were valued less than the mortgage on them, according to the information from zillow.com, a famous real estate tracking firm. Most home owners are deprived of the 20 percent equity that is needed to avoid the costly private mortgage insurance.People who have underwater mortgages can still refinance their mortgage if they have good payment records and their loan is assured or backed by Fannie Mae or Freddie Mac. These government operated agencies give room for the refinancing of mortgage loans up to 125 percent of the value of the home. If your present mortgage loan does not need mortgage insurance, you do not need it for refinancing. You can know more about how Fannie or Freddie backing up your loan at their respective websites.If your credit score is less than 720, you may not get the best mortgage e rates. If it is under 640, you may find it hard to get mortgage. FICO says that the median credit score in the US for getting a good mortgage is 711.People are looking towards moving from 30 year mortgage to 15 year mortgage. A loan of 15 years has averaged 3.9 percent in the previous week with 0.6 points. When we say points, we mean a percent of the loan paid by the borrower at the time of mortgage closure. You have to pay points to reduce the interest rate. The average 30-year mortgage rate of 4.42 percent includes 0.7 points. So, if you move that $150,000 mortgage to 15 years at a 4 percent rate would actually raise the monthly payment by $136. However, your family will be able to pay off the loan faster and save heavily on interest. Here is information on mortgage refinancing for people with bad credit.You should shop around for a mortgage online. Actually, smaller banks offer better mortgage deals than bigger ones. You can shop at various banks, mortgage companies and credit unions as well. Find out what are the rates and the closing costs. Often the pattern is such that the lower rates imply higher closing costs and vice versa. Also be careful about the ‘junk fees’ that lenders use to artificially inflate their profits.
Right now, many homeowners are considering refinancing their mortgage. The one thing that all homeowners want when refinancing is a low interest rate. Right now, interest rates are near all time lows, but I think that will change. Here are my mortgage refinance rate predictions for 2010.Throughout 2009, mortgage interest rates have been very low. This was due to a few factors. The housing market was in a downward spiral, and need help. Many homeowners got into ARM (Adjustable rate mortgages) which they need help with. Also, new Government programs are out which can help millions of homeowners. This has led to an all time high number of foreclosures. This is why interest rates remained low throughout 2009.While the rates are as low as they are, many homeowners can take advantage and refinance their home loan. This can result in huge savings in monthly payments and even more over the course of the loan. Also, this may be the only way a homeowner can get an affordable home loan, and save their home from foreclosure.Right now a typical interest rate for a fixed mortgage refinance is around 5.19%. This is dramatically lower than interest rates were just 5 years ago. This has led to many people getting a refinance for their home loan. However, I do not think the rates will remain the same in 2010 for homeowners looking into refinancing.I think that in 2010, mortgage refinance rates will go up. While not dramatically, especially at first, homeowners will definitely notice, and some may not be able to benefit from a refinance after the rates increase. I think that around April 2010, interest rates will rise about.5%. While not a huge increase, it is a lot in the long run of a home loan. Also, I think rates will increase again, by as much as an additional.5%, closer to August 2010. This would bring the total mortgage refinance rate to as high as 6.19% by September 2010. That is a 1% increase from the current rates.I think that this will happen due to increased activity in the housing market, and small improvements in the overall economy. The better things get, the higher interest rates will go. I also think that the housing market has bottomed out, and recovery will start soon. This will cause a boon in the housing market, and restore homes market values. As a result, interest rates will rise, and homeowners will pay thousands more over the course of a home loan.
Home mortgage rates are still at record lows this year, according to Freddie Mac or the Federal Home Loan Mortgage Corporation. For a 30-year mortgage this year, the rate is 4.5% which is down from last year’s 5.2%. This year’s rate is even lower from that of two years ago, which was at 6.5%. What these all mean is that home refinance rates are at an all time low too, this year. If you’re thinking of refinancing your home mortgage, there’s no better time than now and take advantage of this year’s rates, but only if you have the right reason why you want to refinance your mortgage.One of the reasons, and the usual reason, why homeowners refinance their home mortgage is to take advantage of the low rates. You can lower your monthly amortization with a lower interest rate, of course. You can save up to $7,560 over ten years if you reduce your interest rate from 6% to 5.5% of a $200,000 30-year fixed rate loan. You can also change from an adjustable-rate mortgage to a fixed rate if you think the home refinance rates will rise in the future. Conversely, you can change from a fixed rate to an adjustable-mortgage rate if you think the rates will continue to decrease.The other reasons why some homeowner resort to home refinancing, aside from the low home refinance rates, was to adjust the length of the mortgage. You can either shorten or lengthen the term of your mortgage. If you want to finish paying your mortgage faster, or to build your home equity faster, you may want to shorten the length of your mortgage. Shorter term refinancing usually have lower rates also, so although you will have a higher monthly payment because of the shorter term, in the long run, you will save money because you’re paying less rate.If you have been paying your home mortgage for a long time now, it may not be a good idea to refinance your mortgage even though there is a much lower home refinance rates. This is because the longer you’re paying your mortgage, your payments are going towards paying the principal loan. If you resort to refinancing, you will restart the process again and you’ll be again paying for the interests. There are some mortgage loans that will charge you a large fee if you pay your loan early, known as pre-payment penalty. It may also cover refinancing, so it is best to ask your lender first.Aside from the pre-payment penalty, you should also remember the whenever you refinance, you will be paying fees that can add up to thousands of dollars. You may have to pay refinancing fees that totals up to 3% to 6% of your outstanding principal. Refinancing fees differ from States to States and lenders also have their own fees that differ from that of other lenders. Even if the home refinance rates are low and you’re tempted to refinance your home mortgage, it is best to consider these costs and compare it with the amount of money you will be able to save.
If you own a television or a radio, you are probably pretty familiar with the term “refinance.” There are tons of companies boasting about the great mortgage rates and every better refinance rates. Sounds wonderful, but what does all of it mean?If you refinance your home, a lender will pay off all of the debt you owe on your home and will issue you a new loan. This new loan can be pushed out to whatever length you need to get the monthly payments you are dreaming of. It can help lower your interest rate and can save you money every month. Refinancing can also help those with a bad, adjustable rate mortgage switch to a more stable fixed rate loan. But there are several major reasons NOT to refinance; to determine if this is the wrong time for you to refinance your home, ask yourself these simple questions.How long do I have left on my mortgage? Even if your payment is way too high for your current situation, refinancing a loan that only has two more years left on it will only hurt you in the long run. If you still have a substantial amount of time on your loan, a refinance would be better suited to your situation. If you are trying to refinance more than the remaining balance on your home loan, an equity loan may be the better route to go.How much is my home worth now? When you bought your home for $500,000 four years ago, you took out a loan for 80% of it. Too bad your home is now only worth $400,000. If you try to refinance a loan on a home whose value has dropped, you may not be able to get a loan large enough to cover your original loan. Refinancing loans isn’t for people who have lost a great deal of property value. Be sure to consult your bank to find out what would be a better course of action for your upside-down home.How much equity have a used? If you have taken out a second mortgage, be wary that refinancing your home with an equity loan already in place could drive you deeper into debt, instead of helping you out of it.How does my credit look now? If you got your home loan a few years ago, before you were unemployed for two months, or before that big hospital bill or bankruptcy, your credit may be a little worse for wear. If you try to refinance and your application is rejected because of your credit, it will negatively effect your credit score. If your credit has taken a beating, it doesn’t need another blow! Be sure your credit is healthy before trying to refinance; it will help you save money in the long run.Would I be financing for more than 80% of my home’s value? If you are planning to refinance your mortgage and second mortgage, be aware that new loans for 80% or more will drive your interest rate up.