Refinance Home Loan Rates Follow Interest Rates Higher
Current refinance home loan rates are following interest rates higher. Last week mortgage rates started to move up and it looks like that will continue into this week. It seems that unless the Federal Reserve Bank makes an announcement that they are going to buy up massive amounts of debt, mortgage rates move up. There is a good chance that Ben Bernanke will make a statement this week that will affect average mortgage rates but who knows what way it will push them.
President Obama and Ben Bernanke have done everything in their power to keep mortgage rates below 5% but it seems like they are running out of bullets. Sadly, this could cause home prices to fall even more as higher home loan rates will mean lower average home prices. This might be exactly what the housing market needs to flush out the bottom and find a stabilization so home prices can state appreciating.
Overall it looks as if refinance home loan rates are going to move up this week but only time will tell how high they are going to go. If you have been thinking about refinancing your current mortgage, it would be advisable to get that done as soon as possible as mortgage rates could be above 6% in the very near future.
Refinance Interest Rates – Moving Higher?
Refinance interest rates are moving higher next week. The 30 year mortgage interest rate is sure to go up as the 10 year treasury yield rate has pushed much higher this week. The treasury yield was up almost 10% which means average mortgage rates could move MUCH higher next week. It will be very interesting to see what happens, but it would not be surprising to see mortgage rates around 5.5% by the middle of next week. If you have been considering a refinance, now might be the time to get that application in.
Many home owners have been seeking a refinance rate under 5% but that seems highly unlikely now that the 10 year treasury rate yield has remained in its uptrend. Since January, the 10 year yield has been pushing higher. At one point, the yield moved from 2% all the way to 4% before pulling back. The yield now sits around 3.63%. If an assault on 4% continues, we could see average mortgage rates push their way to 6%. This would be very bad news for current home owners attempting to refinance.
Maybe a push higher in mortgage rates is what the overall housing market needs to flush out the bottom. When mortgage rates rise, one thing is for certain, we are going to see home prices fall even more. Home buyers are willing to pay less for homes because they have to pay so much more in interest on their mortgage payments. Overall, look for refinance interest rates to move up next week.
Fixed Year Mortgage – How Many Years is Right For You?
Getting a fixed year mortgage is often the decision of many home owners. The question that many of these home owners must figure out is how many years do they want on their fixed year mortgage. There are many options available ranging from 5 to 40 years. The lower the amount of years, the lower the interest rate. With that being said, you must understand that if you are paying on a 5 year mortgage, your payments will be very large. If you get a 30 year mortgage, you will end up paying a higher interest rates, but your monthly payments will be more manageable.
Determining just how many years you want on your fixed year mortgage will take some work and calculations. There are many mortgage calculators available on the web but my favorite is here. The pie chart on that site will help you visualize how much you will pay in interest over the course of your home loan. One word of advice is to pick a monthly mortgage payment that YOU can afford. If you save money in interest but can’t make the monthly payments, you are basically throwing away all the saved money by making late payments.
The most common fixed year mortgage is the 30 year fixed rate mortgage just because it creates very manageable monthly mortgage payments. President Obama recently created the Making Home Affordable Plan which states that 31% of your household monthly income should go towards your mortgage payment. Figure out with your monthly income is and use this as a round figure to choose the amount of years you want on your fixed year mortgage.
Freddie Mac Mortgage Rates Survey Shows Rates Lower
The Freddie Mac mortgage rates weekly survey showed mortgage rates lower. Subprime Blogger does a weekly prediction of these mortgage rates and once again was very accurate. From Subprime Blogger:
In this weeks earlier addition of mortgage rate predictions on Subprime Blogger I predicted mortgage rates to be at 5.05%. My predictions are based on the Freddie Mac weekly mortgage survey so I cannot take too much credit, but…from CNBC.com:
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.05 percent, down 0.29 percentage point from the previous week, the lowest since the week ended May 22, but higher than the all-time low of 4.61 percent set in the week ended March 27.
The actual data that Freddie Mac released show mortgage rates at 5.14% but still not far off from Subprime Blogger’s prediction. It will be very interesting to see if this site can keep up the momentum with picking mortgage rates rather accurately. There are many aspects of Subprime Blogger that are very alluring. The owner has done a great job to build up a following of home owners and first time home buyers who are interested in the mortgage market.
With that, the owner feels like mortgage rates are headed higher because of the 10 year treasury rate yield. It will be very interesting to see if he is correct in this prediction.
Interest Rate Trends – Current Mortgage Rates Up?
For the last several months, overall interest rates and mortgage rates have been a downward trend channel. In late May and early June, it seemed that the trend channel had been broken and overall rates were going to head higher. The 30 year fixed rate mortgage went from 4.8% to 5.59% in just a few short weeks. After the high of 5.59%, mortgage rates fell all the way back down to where they were earlier this week, which was 5.05%. It looks as if this might have been the short term bottom. The 10 year treasury rate yield has seen a bounce and it looks as if mortgage rates are going to follow.
If the 10 year treasury rate does get a strong bounce, where are mortgage rates going to end up? This is a very tough question to ask as there is no way of knowing what the government is going to do to push mortgage rates lower. One thing is for certain, the Federal Reserve Bank is going to do everything they can to cap interest rates. It is very possible that they may have run out of ammo for this fight though.
If the 10 year yield goes all the way to 4% it is likely that we will see the 30 year fixed rate mortgage around 6%. If the 10 year yield breaks the 4% resistance level, mortgage rates may go MUCH higher than that. This is very bad news for anyone who has waited to refinance or buy that first home. It might be a good time to get out there and try to lock into a mortgage rate under 5.25% before we see a strong jump in the overall interest rate market.
The current interest rate trend seems to have turned the corner and is showing signs of higher interest rates. Do not let this alarm you, but please make sure to take advantage of low rates while they are still available because they may not last for much longer.
30 Year Fixed Rate Mortgage Lower This Summer?
The 30 year fixed rate mortgage has definitely worked its way lower this summer. At the very beginning of the summer, the 30 year fixed rate was around 5.6% but we are now seeing at around 5.2%. For those of you who watch mortgage rates on a daily basis, you know that the 30 year fixed rate mortgage has been for quite a ride over the last two to three months. A quick bump up in early June was followed by a slide all the way back down to 5.2%.
Will these lower rates continue throughout the summer? There are sure to be some bumps along the way, but it sure seems like the overall mortgage rate trend is down. The upper trendline was tested back in June but it looks like the downward trending motion will continue until something drastic changes. Every time I think that average mortgage rates are going to head higher, the government steps in and takes the appropriate actions to keep the 30 year fixed rate mortgage down.
From what I can see, it looks as if the Federal Reserve Bank wants to put a cap on mortgage rates around 5.5%. There is absolutely no way that mortgage rates should be below 5% but it looks like it is going to happen with the helpful of the federal government. This is great news for those of you who are going to be first time home buyers or for those who want to refinance their homes at extremely low mortgage rates.
We are truly living in unprecedented times when it comes to mortgage rates. Never have rates stayed this low for such a long period of time. If there is another push lower, the 30 year fixed rate mortgage will likely average being below 5% for the entire year of 2009. Prior to 2009, it was almost unheard of to get a mortgage rate this low. Now we are hearing almost every single day that one of our friends or family members got a sub 5% mortgage.
I strongly urge you to start doing your research now when it comes to refinancing. Even if you don’t have the extra cash and think you are going to wait to refinance, nothing is more valuable than knowledge. Make sure to check out Making Home Affordable and see if you can benefit from some of the governments plans to help America refinance. Overall, this is one of the best times in history to get a low mortgage rate, so go for it!
Refinance Your Home Loan at Low Mortgage Rates
Refinancing your home loan at low mortgage rates could save you a lot of money in the future. Many home owners have refinanced at rates at or below 5% and it is likely that you will have the chance to do this as well. Not every home owner is going to get a low refinance rate, but the government is urging lenders to offer low rates to borrowers so it is worth a shot.
There are many resources available online to assist you in getting a low mortgage rate refinance. The first thing you should do is to contact some lenders to see what type of opportunities they are offering. There are advertisements all over the internet and television that will give you a number to call these lenders. They will not be able to give you a specific quote for your situation without some personal information but they should give you a generic rang of mortgage rates they are offering.
If you have the possibility of refinancing at a full percentage point lower than your current mortgage rate it is advisable to start the mortgage refinance process. One of the first things you should do is determine your debt tolerance. Do you currently have several credit cards that have a large balance on them? Do you have student loans that still need to be paid off? Have you gotten a credit score in the last year? These are all questions you need to answer honestly.
You can get a credit score for under $20 on the internet. It is advisable to get a credit score at least twice a year. You never know what the credit agencies see on your report. I think we all have a friend or family member that has had their credit ruined because of a charge that should not have even been on a credit report. If you have a dispute, immediately address it before you continue on with the refinance process.
After getting your credit score squared away, you will need to choose a lender that suits your needs. Do not feel obligated to pick a lender just because they provided you with valuable information; that is their job! Pick the lender that you feel will best help you to get the lowest mortgage rate possible but will also provide you with the customer service you desire. Within the first day of working with a lender, you are likely to know if you can strike a deal with them.
One word of caution is the refinance process is the appraisal step. Some homes have not been appraised for years and it is likely the value has decreased. Some markets have seen a decrease of over 50% in value so do not be surprised if your home has lost some of its value. Sometimes it is best to get an appraisal before going through the entire refinance process but that is totally up to you.
Home Mortgage Refinance at Low Interest Rates
Getting a home mortgage refinance at low interest rates is something that almost every home owner is looking to do today. If they are not looking to do this, it is likely that they have done it in the recent past and got a mortgage rates close to or under 5%. With average mortgage rates falling every week, now might be one of the best times in recent history to attempt to refinance at low mortgage rates.
For the last three weeks average mortgage rates have fallen. It seemed like just the other day that CNBC was reporting that interest rates were headed much higher. Well, that was short lived as the Federal Reserve Bank has stepped up their purchases of United States debt which has sent mortgage rates lower. It seems any time that daily mortgage rates start to tick up, the Fed steps in and does whatever it takes to push them right back down.
Now that the 10 year treasury rate yield is well under the support of the 50 day moving average, it looks like low mortgage rates are here to stay. If the 50 day moving average was once support, it is now going to serve as resistence when the 10 year yield actually moves higher. It is likely we will see a short lived rally in the rate yield to get back to the 50 day moving average, but it is likely to pull all the way back down to the next support level of the 200 day moving average.
If the 10 year yield does pull all the way back to the 200 day moving average, where will mortgage rates be? Well, if this does in fact happen, look for mortgage rates to work there way well under 5% and possibly back to the levels we saw in March. The 30 year fixed rate mortgage bottomed at around 4.78% in March but many homeowners got to refinance at rates even lower than that. If the 10 year yield continues its slide, you may get this opportunity as well.
No one really knows where rates will bottom out at, but it sure seems the government is going to do everything in their power to cap interest rates. If mortgage rates get anywhere near 5.5% the Federal Reserve prints BILLIONS of dollars to buy up government debt which forces rates even lower. Even though this might not be the best fiscal move for the future, it sure is going to help you refinance at a much lower rate!
Home Loan Mortgage Rates – Lower this Week?
Home mortgage loan rates have been lower for three straight weeks and this we could continue the trend. For the most part, home loan rates are lower because of the actions by the Federal Reserve Bank. The government is calling on the Federal Reserve Bank to continue to purchase US debt. In the first half of the year, the Fed purchased $280 billion and may purchase MORE in the second half of the year. Every time average mortgage rates start to ease up, the Fed steps in and prints billions of dollars to buy more US debt.
This is likely very bad for the economy in the long run, but it is giving you the opportunity to get extremely low mortgage loan rates. The government has actually talked about trying to put a cap on interest rates. In more words or less, this is exactly what they are doing by using the Federal Reserve Bank to gobble up US debt. I find no irony in the fact that every single time mortgage rates are likely to move upward, the Fed makes an announcement that they are going to increase the purchases of US bonds.
With that being said, it looks as if home loan mortgage rates are going to continue lower this week. Last week the 10 year treasury rate yield was down significantly so there is no reason that daily mortgage rates do not sink with the 10 year. Eventually the treasury yield will see a bounce, but the Federal Reserve Bank is making sure that does not happen anytime soon. Most financial pundits thought that the 10 year uptrend would hold intact last week, but that was before Ben Bernanke, the chairman of the Federal Reserve Bank, put the printing press into high gear.
I am not a advocate of what the Federal Reserve Bank is doing BUT it is giving every American home owner to refinance at unbelievably low rates. Although lenders have been a little more strict with their lending practices, it is very likely that you will be able to get a significantly lower rate than ever before in your life. If you have a mortgage rate above 6% I would urge you to take advantage of this time and go through the refinance process.
One word of caution with the refinance process is the appraisal step. I would make sure you have an up-to-date and accurate appraisal as many homes have lost quite a bit of value over the last few years. You do not want to find out that your home is worth 30% less than you thought and have your dreams of a refinance under 5% shattered. Be honest with yourself and get an accurate assessment of what your home is worth.
Best Home Refinance Rates Available Today
Getting the best home refinance rates available can be a very daunting task. All over the Internet, you see advertisements for rates well under 5%. The problem with this is that they are generic mortgage rates that do not take into account your current financial situation. Trust me, if you have a 125% loan-to-value, a 650 credit score and you have 14 credit cards that are maxed out, you are NOT going to get a refinance rate anywhere near the advertised 5%.
With that being said, you are likely to be able to get a refinance rate lower than your current mortgage rate. That is if you haven’t refinance in the last few months. I think we all know friends or family members who have refinanced in 2009 and they got rates well below 5%. I actually had a coworker tell me that he refinanced at 4.5% on a 30 year fixed rate mortgage just the other day. These are the stories we love to hear and it is even better if it is you!
The first task that you are going to need to do is to assess your current financial situation. If you have any unpaid debts, now might be the time to go ahead and pay those off. If you have had a few hundred dollars in credit card debt lingering around for a few years, it might be best to find some extra cash and get that balance down to zero. Student loan debt is not as bad as credit card debt, but it still won’t hurt to pay some of that off either.
Once you have figured out your debt situation, you need to get your home appraised. This is a process that has hurt many refinancing applications in 2009. Many home owners do not realize that the value of their home has greatly declined because of the troubling housing market. My suggestion would be to get an accurate and current refinance appraisal before you go through with the entire mortgage application process.
If you go through those two steps and have no major issues, you are in line to get a great home refinance rate! As stated earlier, you see all kinds of advertisements for low mortgage rates so just give one of them a call and pick their brain. You have the opportunity to go to any lender that you like so do not feel obligated to give any specific lender your business. I would encourage you to use the resources you have and use lenders numbers against them. If one lender offers you 4.5% and another quotes you at 4.6%, I would tell the second lender you have a better offer. They may decrease the offer just to get your business.
Overall, this is a great time to refinance your home. Please make sure that you have an accurate value of your home before you go through the entire refinance process. Many home owners do not realize the fact that their home has greatly declined in value. With that being said, go out there and get the best refinance rate available today!