The Mortgage rate roller coaster time to get on?

April 9, 2009
Matt Isleib

 

Greed is what helped propel the domino effect on the economy and financial and real estate markets over the past 2 years. There are very few bright spots in the mortgage or real estate world but here are three. The Government has in place a first time buyer tax incentive of $8,000. Property values are cheap and mortgage rates, well they are at near historic lows.

 

The mortgage rate roller coaster is presently in your town. I am the owner of Eversley Capital Mortgage LLC located in Norwalk, CT. The question that I get these days from existing clients and new ones is whether or not to jump on and seek the options of refinancing? My answer is precise and to the point. If it makes sense for you to refinance today you should jump at the opportunity. If you are someone who is on the fence or not sure if rates may go lower then odds are you could miss the boat.

 

The fact here is interest rates for 30 year mortgages are at near record lows. You can for the most part depending on your credit score, type of property and amount of equity in your home secure an interest rate under 5 percent. In fact in some cases we are at 4.5 percent paying a point for a lot of borrowers. Rates on 15 year mortgages are hovering close to 4 percent.

 

Mortgage rates in the past year have been volatile. I almost dare liken the swings to that of a .com stock back in the day. At the end of November 2008 30 year mortgage rates were above 6.00 percent. They were 6.6 percent in August 2008.By the end of 2008 they were 5.5 percent, dropped under 5 percent shortly in the beginning of 2009 and then went back up to 5.5 percent. We have since seen rates drop under 5 to an average currently of 4.85 percent.

 

The mortgage rate train is here for how long who knows? If you have an interest rate higher than 5.5 percent you should seek the possibility of refinancing. If you wait you may miss the boat and that could end up costing you and your family a whole lot of money.