by Robert Hyder
It’s never easy to recognize the end of a cycle. That said, it’s only a matter of time before mortgage rates begin inching higher. Many experts believe the existing historically low mortgage rates will remain low through the end of the year, and quite possibly edge even lower. Then again, this country has not seen mortgage rates this low since the end of World War II, prompting others to believe this is as low as they will ever go.
With the recent news of the U.S. Treasury Department again considering doling out billions of additional dollars in incentives to banks and mortgage investors, is it probable we’ll see fixed-mortgage rates plunge into the low-4% or high-3% range? Or is now the time to refinance and lock in a mortgage rate before they climb back up? Borrowers looking to refinance are facing a difficult decision to either lock now or wait. Either way, the decision to wait could be the difference in tens of thousands of dollars over the life of their mortgage.
My recommendation would be to lock now. Borrowers would be ill-advised to wait as property values continue to erode. Excellent credit and a history of timely mortgage payments would be deemed worthless if home values maintain their current downward spiral, forcing a loan-to-value above the threshold of 105% that has been established by the federal government’s Home Affordable Refinance Program (HARP).
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» Mortgage News: Is Now the Time to Lock In a Low Refinance Mortgage … | Refinance Mortgage Rates Online
April 23, 2009 @ 12:04 pm
You Should Act On Your Refinance Before It’s Too Late
Posts about How to Refinance Your Mortgage as of April 24, 2009 | Mortgage Refinance
April 24, 2009 @ 4:17 am
Except you desire to get normal rates with a prime loan. If you have bad credit, it is tenable.