Is It a Good Time to Refinance with Today’s Mortgage Rates?
By Jim MichealsToday’s mortgage rates remain lucrative for homeowners because of unique government policies. These policies may change at anytime and may not last.
The best time to refinance is when savings are guaranteed. Today’s mortgage rates offer a great opportunity to lock-in and guarantee a profit over the next 30 years using historically low APRs. This opportunity may not last long.
Today’s Mortgage Rates
Finding today’s mortgage rates is easier than anytime before in U.S. history. Home loans and APRs available to homeowners remain at the forefront of national news. The government, Fannie Mae and Freddie Mac continue to tweak the national economy using today’s mortgage rates. To find an actual rate quote does require a personal application. Rates vary because of the unique personal situations presented by each applicant.
80 Year Historic Low
The trend remains constant. Today’s mortgage rates remain at the lowest level since the Great Depression. After the real estate bubble burst, home prices plummeted nationwide. Homeowners faced sever difficulty keeping home payments current. The national level of default grew to unprecedented levels and correspondingly increased the national foreclosure rate. To avoid collapse, the U.S. government infused capital into the economy at rates close to 0% APR for financial institutions. The infusion of cheap money passed through to create the lowest APRs available to homeowners in over 80 years.
Fixed Rate Loans
To lock in a historically low APR, borrowers must demand a fixed rate loan. Adjustable rate mortgages do not offer the same benefits and protections. The APR charged on adjustable loans will eventually rise and is limited only by the latitude of swings in the financial markets and the national rate of inflation. Fixed rates loans do not respond to these uncertainties. Far better, fixed rate loans remain the same for the life of the loan.
Related posts:
- Should I Consider a Refinance Now with Mortgage Rates Increasing?
- Is Now The Time To Lock In A Low Refinance Mortgage Rate?
- Are Mortgage Interest Rates Steady in Today’s Market?
- How Does A Slow Economy Affect Mortgage Refinance Rates?
- Can I Lower The Interest Rate On My Current Mortgage?
