Current Mortgage Rates: Mortgage Interest Rates Still at Record Lows
With current mortgage rates at all time lows it is not surprising that the volume of refinance loans is significantly on the rise. Not only are interest rates at an all time low but the Obama administration has enacted several programs and policies that make refinancing your home even more financially attractive. There has really never been a better time in history where refinance loans have been so financially advantageous for homeowners. If you are anticipating being in your current home for at least another 3 years then it would be financially prudent to at least look into refinancing your home.
Refinancing or getting a home loan modification at the lowest interest rate is the best way a homeowner can save a lot of money every month on their mortgage. Earlier in the year, homeowners flocked to take advantage of a 4.69% mortgage rate and refinance or modify their mortgages. A lot of homeowners pay 9% or more in interest rates, and the rate offered earlier in the year was a great chance to save a lot of money. Recently though, a .5% increase in mortgage rates was enabled. I thought this would happen as a result of banks and mortgage lenders being overwhelmed with paperwork and customers looking to save their home from foreclosure, or take advantage of the ultra low interest rates. The paperwork quickly piled up, and the rates were increased to help curb the flow of mortgage refinancing and modification applications. Increasing the rates by .5% stopped homeowners from applying unless they were truly in need of saving their home. I think though, and this is where my predictions begin, that mortgage rates will drop to their prior lows, and soon.
It’s a general fact that by paying an extra $100 on your monthly mortgage payment will take six years off the life of your loan duration. Of course, the actual number of years you knock off the life of your mortgage will depend on your interest rate, but that’s an average for a mortgage of about 8 percent interest. The general argument against paying off your house early is that you won’t be able to write the interest off on your yearly taxes any longer. Who cares? You either pay about $1 in mortgage interest or .31 cents in taxes. Take your pick. In addition, many people don’t stay in one house for the duration of the mortgage, and move every ten to twelve years. Or else they refinance for lower monthly payments, knowing they’re not going to stay in the house long enough to pay it off anyway. But why live with a mortgage hanging over your head for the rest of your natural life?
If you can, I think you should wait to refinance or get a modification until the middle of October of this year, and see where the rates are at. However, if you are facing financial hardships, or are in danger of losing your home, take action now.
We will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan.
Learn more about Obama Mortgage Relief Plan Qualifications.
