Lower Interest Rate on Mortgage - Reasons to Get a Lower Interest Rate on Your Mortgage [mortgageloansplan.blogspot.com]
For real information click HERE: best-refinance-home-mortgage-loan-rates.com Getting the best refinance home mortgage loan rate, then, can be important to almost any homeowner. READ here to Save your money: best-refinance-home-mortgage-loan-rates.com
mortgageloansplan.blogspot.com Getting the Best Refinance Mortgage Rates
Want To Get a lower Interest Rate On Mortgage?
If you can you should take advantage of the times now and get a lower interest rate on your mortgage. Historically the cost of borrowing right now is relatively on the low side. You will definitely benefit if you take out a new loan right now or refinance your old one. There are several options you have during times like these but it is also important that you think through each one.
Reasons To Refinance Your Mortgage Now
Stabilize Your ARMÂ Loan-If you originally received an adjustable rate mortgage, then today might be a good time to switch to a lower rate fixed loan and enjoy the savings. Even if you can't save as much, you may want to consider giving up the insecurity of an ARM for a fixed interest mortgage.
Consolidating Your Debt- If you have alot of unsecured credit card debt and have the equity in your home you may want to consolidate your debt into your mortgage.
This way the interest you pay is tax deductible and your monthly payments should go down. Just be careful not to run the debt back up once you consolidate it!Improve Your Home- If you have any home improvement projects that you would like to do now is the perfect time. Not only are rates low but many contractors and home improvement supply stores are offering deep discounts. With these discounts you might be able to get more work done for less money!
Save Money- If you have no debt and do not want to improve your home you can still benefit from a reduced rate by lowering your monthly payment.
Most people advise that you only refi if you can drop your loan rate by 1 point or more. But if you plan to live in your home a long time it may benefit you to refi for as little as a 1/2 of a percentage point. Over time it will save you a lot of money in interest payments! Related Lower Interest Rate on Mortgage - Reasons to Get a Lower Interest Rate on Your Mortgage TopicsQuestion by pieface: How much more do you think the interest rates will drop on fixed rate mortgages? Also what do you think the lowest they will go is? Best answer for How much more do you think the interest rates will drop on fixed rate mortgages?:
Answer by REIBroker
There is no indication that fixed rates will go down at all. Unfortunately there is a misunderstanding of the "rate" reported on from the Fed. This is the "target" rate which is set by the market and reported by the Fed. The best thing it does when it goes down is to inspire consumer confidence. Rates likely will go down very little -if at all- before the Fed target rate rises again. Unlike the last time the Feds had to set that rate lower there is far less liquidity in the market and consumer confidence wasn't waning - it was building. The truth is rates are still historically low. If you are looking to refinance I have seen rates this week as low as 5.25 with no discount on a fixed 30. It didn't get much lower than that at the lowest of lows. It really depends on what happens with the bond market for bonds that drive Fannie Mae and Freddie Mac. If we hit inflation and recession becomes a reality the Fed change will not affect the mortgage rate that will be important to you. It also depends if you have a conforming (agency) loan or a non-conforming loan (outside of agency guidelines falsely referred to as "sub" prime). Bottom line: I would LOVE for rates to go lower but it's not a likely reality that you'll seen them go much lower than they are right now.
Answer by Blah Blah
One never knows. In the short to medium term, they will likely come down. Even though the Fed dropped overnight rates .75%, that doesn't mean that longer-term rates will drop. If the drop is considered to be inflationary, long-term rates can actually increase. But considering that the economy is currently in the dumps, I don't see inflation as an immediate concern, so I do see rates dropping. Another item that keeps rates up is credit spreads ... the interest rate that you get is a premium to a risk-free rate, or a treasury of a similar duration. That credit spread, or premium to a risk-free rate has been high recently because of all of the subprime losses and the drop in real estate prices, which has led to losses on "A paper" portfolios. That credit spread should come down over the near term.. . How much? I can see a normal fixed rate 30-year loan being at 5.1% to 5.6%. That is about all we will see for now. The hybrids (3/1, 5/1, 7/1) should be a bit lower. But in the long-term, inflation will creep back in from three sources --- weakness of the U.S. Treasuries (greater credit risk), inflation caused by increased cost to produce overseas, and "crowding out" when the government borrows to pay for debt which competes for dollars with the average consumer - pushing rates up. So go get your fixed rate under 5.5% and be happy. P.S. -- there is also a chance to get a loan at 5% or lower in the next two years, but that is a risky proposition to wait for it. All in all, the lower rates is good for real estate prices ... should keep them up. And that should keep loan losses down. that is good, too. It could be a good time to get a loan ... if you have a good stable job and want to purchase.
Answer by John K
Oh ... great question. Of course, there's no sure answer. Thing is, even though the Federal Reserve has dropped its Fed Funds rate, it only has limited effect on the rates on your mortgage loans. A mortgage loan is a 30-year loan, whereas the Fed Funds rate is for short-term loans. Mortgage loans track 10-year Treasury Bonds, but are a bit higher, due to the added risk. And, sometimes long-term bonds go in the opposite direction of short-term bonds. But, back to your question. I think we've hit rock-bottom for mortgage loan interest rates. Sure, they might go lower, but now's as good a time to lock-in a rate. I just refinanced from a 6.75% fixed-rate loan to what I hope is a 5.625 fixed-rate loan. It was only today, so I'm not sure what we ended up with. Best part, it was with no closing costs. I could've received a better rate if I was willing to pay closing costs. I think brand-new loans can get a better rate than a refinance. If everything turns bad over the coming months, rates might drop lower, but then you can just refinance! http://bostonreb.com - The Boston Real Estate Blog
Answer by Tres7
They dropped this morning and my guess is that they will drop at least one more time before the end of Feb. Beyond that they will wait to see what it does for the economy. More than likely will not go past 4.5% and will not stay there to long. It is a great time to buy a home....This is just my opinion considering the election year, the economy, and history of what happens during a Buyers market. We will all wait to see, but don't wait to long.
