Why Are Mortgage Rates Still Low?

According to information provided by Freddie Mac, current mortgage rates are not following the forecasts by industry experts that called for higher rates in 2010.

15 year fixed mortgage rates are in the 4.25% range, their lowest rates since April of 1991. 30 year fixed mortgage rates have been averaging around 4.8%, at the one of its lowest points historically. One year adjustable mortgage rates have dropped to their lowest point this year. Five year adjustable mortgage rates have also remained fairly consistent.

Current interest rates are holding at historic levels still. In fact, rates on 15 year fixed mortgages recently set another record low rates. Credit conditions among borrowers are also better. Homeowners who were up to date on their mortgage payments outnumbered borrowers who were defaulting on home loans.

Economists expected interest rates to rise in 2010, starting with the Federal Reserve’s completion of $1.25 trillion dollar mortgage-backed securities purchase program. However, since then mortgage interest rates continue to remain low. Between the months of March and May, 30 year fixed mortgage rates have gone down a full 0.2% and 15 year fixed mortgage rates have gone down 0.14%.

What is Keeping Mortgage Rates Low?

Certain industry professionals are concerned that these rate drops may not be a good sign for the U.S. economy. They think that mortgage rates are not rising because of the effects of the European economic crisis is pushing investors to more reliable U.S. mortgage investments, which keeps rates low.

It is worth mentioning that interest rate declines in the past have proven fleeting, with rates moving higher after potentially permanent economic solutions have been identified.

While these low rates are good news for buying or refinancing a home, it’s also worth noting that not all borrowers will have equal opportunity to lock-in these low rates. In order to actually get the lowest mortgage rates available, borrowers typically will need a credit score of at least 720 and a significant down payment for a home purchase, or sufficient home equity to refinance.

 

Written by R. Smith: Mortgage Refinancing, Mortgage Quote, New Homes San Diego

August 19, 2010  Tags: mortgage, Mortgage Rates  Posted in: Off Topic  No Comments

Benefits Of Knowing About Mortgage Rates

Benefits Of Knowing About Mortgage Rates
by Helpnets.com

If you have a dream of one day owning a home free and clear, then you will have to explore the different mortgage rates that available to you and choose the one that will make this dream a reality. When you going through the financing process these are the things you have to ask your self before you make a life long commitment.

Purchasing a home is a big step and an even bigger investment and should not be done without first thinking of all that you want and what end results you want to see. By knowing this information in advance you will be more prepared to answer those question that might come up during your search. It will also help to prevent you against all of those predatory lenders out there.

You do not want to be paying a monthly mortgage that seems to never end and that has you trapped in a situation that you see no way out of. A low mortgage may seem very appealing to you right now, but how mush interest and time does that low rate cover. Over the life of your loan those low payment could equal very high cost.

It is because of this that knowing about the different types of mortgages will save you so much future headache. Although there are a lot a different rates available they all fall under two categories. Which are fixed rates that stay the same price through out a agreed upon length of a loan, there others are rates that have the chance to change over time.

A thirty year fixed rate mortgage is the traditional mortgage that most people try to acquire. They allow you to have low monthly payments while at the same time giving you a foreseeable future of when the loan can or will be paid off. However thirty years is a long time and because it is a pre-agreed time period there is not much you can do if some thing came up over that time period.

A lot of people now a days are looking into shorter fixed rate loans. Fifteen year fixed rates are great because they allow you to own the home before your children go off to college. The disadvantage of a short fixed rate loan such as this one is that the monthly payment that you will be obligated to pay are a lot higher. This may not be a problem for some, but if it is for you then you may want to look into a nice medium. Like a twenty or twenty five year fixed rated that will allow you to pay reasonable monthly payments while still having a set date for owning your home.

There are several other types of mortgages that are available to you, it may just require you to do a little more searching for them. There are even some companies out there that will work with you to customize a special payment plan that works with your budget but allow you freedom in a good time period as well.

Finding mortgage rates will be easy, but finding the right one for you and your family may take a little work. Just remember anything worth having is worth working for.

Copyright 2010 – Helpnets.com

June 8, 2010  Tags: Mortgage Rates  Posted in: Mortgage Rates  Comments Closed

Refinance Mortgage Rates

Refinance Mortgage Rates
By Christian N

Refinance mortgage rate is the best rate available to qualified homeowners for refinancing their current home mortgage. Refinance mortgage rates vary from product to product and customer to customer. A consumer with excellent credit will qualify for the very lowest and best refinance mortgage rate but one with problem credit will have to pay a higher rate of interest. Refinance mortgage rates are offered by mortgage loan companies, banks, and savings and loan associations. You can find out the best refinance mortgage rate by going to an Internet web site and supplying answers to a survey that will enable a quote to be made for your particular situation.

The refinance mortgage rate you are hoping to find will enable you to save money on your mortgage by reducing your monthly payment. In addition, refinance mortgage rates can greatly lower the long-term interest you will pay on your home mortgage and can save you thousands of dollars in the life of the loan. A refinance mortgage rate that lowers your mortgage interest can allow you to complete home repairs and have money for other needs that you just wouldn’t have had otherwise. Refinance mortgage rates vary according to an individual’s credit report and other variables that are added into the refinance equation.

A consumer’s credit status, employment status, mortgage payment history, and amount of money refinanced determines a refinance mortgage rate. Refinance mortgage rates can be obtained by applying for a mortgage refinance or by supplying information and generating a quote for a refinance. A refinance mortgage rate has a minimum and maximum amount that can be borrowed. Refinancing a mortgage may require a down payment and may require closing costs. You can obtain all the particulars by contacting a mortgage loan refinance specialist.

Refinance mortgage rates are variable according to fluctuations in the economy, but refinancing a mortgage can still be a smart move on your part. Even when rates are not at record lows, paying off high-interest credit card debts and lowering your monthly payments always makes good financial sense. Refinancing for a better refinance mortgage rate does not have to lengthen the term of the loan. Mortgage offers contain many terms less than 30 years, and some are as few as 10 years. Refinance mortgage rates can make a big difference in your lifestyle and your finances for years to come. Genesis 39:5 says, “And the blessing of the LORD was upon all that he had in the house.” Using your house to your advantage can bring a blessing in itself.

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June 3, 2010  Tags: Mortgage Rates  Posted in: Mortgage Rates  Comments Closed

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