Refinance News

Current mortgage rates are close to all time lows. This is a great opportunity for borrowers and potential home owners to refinance or purchase a new home. Low financing rates can save borrowers thousands of dollars over the life of the loan. The average 30 year mortgage rates were 4.78% this week. Thats just a tad above the all time low 30 year mortgage rate of 4.71%.

You should contact a mortgage professional to see what rate you qualify for:

Texas Mortgage Quote
Florida Mortgage Quote
St Petersburg Mortgage Quote
North Carolina Mortgage Quote
Miami Mortgage Quote
Oklahoma Mortgage Quote
Georgia Mortgage Quote
Long Island Mortgage Quote

The recent low mortgage rates have changed the point at which many mortgage professionals fell that it is advantageous for borrowers to refinance. In the past, many mortgage professionals believed that borrowers should refinance if they were able to reduce their present mortgage rate at least 1 point, however with the recent low rates many people believe this has changed. Since rates are so low, the small change is a greater percent of the original rate.

In the past a 1 point reduction on a rate of  8% was 12.5% decrease of the original interest rate. Now with rates a lot lower a .75 point reduction on a rate of 5.25% is a 14.3% decease of the original interest rate. If points continue to decline borrowers may find it more advantageous to refinance with less of a reduction from the original rate. Borrowers should be aware of this new paradigm as rates continue to decrease.

Rates have dropped to near lows for the year. Many people predicited rates to continue to rise however this may be a great opportunity to refinance. Contact your mortgage professional to see if there is an opportunity for you to save money. Let them share the numbers with you so you can determine if the cost of refinancing make sense for you. Typically, after refinancing there is a specific point in time where a borrower begins to save money subtracting the cost of the transaction.

Good luck and don't forget to take advantage of these great rates!

We'll update you shortly on how this has affected mortgage applications and the purchase market.

The home buyer tax credit ends tomorrow. Many thought that the tax credit would be extended. Unfortunately, it was not. Home buyers have been rushing to beat the dead line in hopes of receiving a $8,000 tax credit. Some experts believe that home prices will drop without the tax credit. Additionally, rising mortgage rates may also negatively affect the housing market as well. In all, home prices are still relatively low compared to the last 5 years and mortgage rats are still at all times lows.

Beware of the no closing cost mortgage. Mortgage companies are in business to make money. Mortgage professionals are not going to give something away for nothing. Keep an eye on your interest rate and points when opting for a no closing cost mortgage. Borrowers can expect to pay higher interest rates or points and potentially can pay more over time with this type of option. Compare other mortgage options to see which is the best scenario for your particular situation.

Mortgage applications rose by the most in the past seven weeks as the home buyer tax credit helped spark the biggest rise in purchases since January. Expect mortgage applications to fall once the tax credit ends.

Posts

Posts

All Comments

All Comments