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!
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!
10 Year Treasury Rate Goes Under 50 Day Moving Average
Yesterday, after the Fed decided to buy more United States debt, the interest rate on the 10 year treasury rate plummeted almost 5%. This is great news for those of you who are in the process of buying a new home or refinancing. It is likely that we are going to see mortgage rates much lower now that the Federal Reserve continues to step in to push mortgage rates lower. Eventually this is going to come back to haunt the United States government but for now the Fed thinks they can spend themselves out of this recession.
Home Loan Modification Affected by Mortgage Rate Trends
Home loan modification was a buzz word for quite some time in early 2009. Everyone and their brother, or sister for that matter, wanted to modify their mortgage. Some people were modifying to avoid foreclosure while others were refinancing at extremely low rates to save large sums of money. Either way, the historically low mortgage rates made it very alluring to get a mortgage modification.
For the last few weeks the mortgage rate trends have totally changed. At the beginning of the year mortgage rates were going down, down and down some more. Now that the 10 year treasury rate is uptrending, the mortgage rate trend has also changed. No one really knows how high mortgage rates are going to go, but it sure seems that the uptrend has begun. It is scary to think about what this is going to do to the overall housing market; only time will tell.
10 Year Treasury Rate Pushing Mortgage Rates Higher
Since the beginning of the year, the 10 year treasury rate has been in a steady uptrend. In December, the rate was at 2.07% and just recently we almost hit 4%. This amazing ride has not been coupled with mortgage rates which is quite unusual. There is a strong correlation between mortgage rates and the 10 year treasury rate so it is very unusual see to one uptrend while the other is downtrend.
Well, that all changed about three weeks ago when it is likely we saw the end of low mortgage rates. Rates may have hit a bottome when they went under 4.8%. Since then it has been a straight up shot to over 5.5%. Bankrate is even reporting that average rates are just under 6%. There is a HUGE difference in getting a 30 year fixed rate mortgage in 4.8% and 6%. I hope all of you locked in on low rates!
Refinancing in 2009
There is a great article at Subprime Blogger about mortgage rate trends, check it out here:
Mortgage Rate Trends – Refinance Rates Continue to Head Lower?
There are also some great links in the article to resources that will help you get a lower refinance rate.
No Closing Cost Refinance with a Low Mortgage Rate?
One of the main reasons that home owners do not refinance is the closing costs that are involved. I am sure we all know someone who has shrugged off the idea of refinancing because they feel that closing costs are going to outweigh the money they will save. In some cases this is true. If you are not going to save at least one percentage point on your mortgage, it is likely that closing costs will outweigh savings; especially in the short term.
If home owners were proposed a no closing cost refinance that would change the minds of many about going through the refinance process. While it is not common, there are no closing cost refinance lenders out there. Sometimes lenders offer no closing costs but the cost are actually rolled into the mortgage balance. In essence, you will be saving absolutely no money if this is the case; it is just a ploy to get more customers in the door.
True no closing cost refinance lenders do not offer the lowest possible rate. The rates they offer are slightly higher than the current rates. With today’s low mortgage rates of 4.8% it might be worth it to incur a higher rate to save on closing costs. Saving every penny in today’s economy might be the difference in being a financial success or a debt ridden failure. A no closing cost refinance is one way you could save quite a bit of money.