If you asked me just a few months ago, where I thought refinance mortgage rates were heading, I probably would have leaned toward rates going up. Why? Well the federal government bailout multi-billion dollar programs used to buy-up US Treasuries and mortgage-backed securities that were glutting the market, came to an end. We were already at historic lows in the spring, so simple logic would tell one that refinance rates were likely to go up.
Fortunately for homeowners that are still considering a refinance, simple logic does not apply to the path of mortgage rates, and rates have dropped even further to lower historic lows. That is why I always recommend to never listen to the so-called “experts” that exclaim mortgage rate direction on CNBC and the like. Truth be told, they or even myself will be wrong more times than not when predicting where mortgage rates will go.
A refinancing homeowner simply should decide whether or not to apply for a mortgage based on their qualified rate and program options at the time they are shopping, considering the financial or other benefits they will receive at that given point and time.
Let’s face it, although refinance mortgage rates are lower than they were in the spring, if you refinanced in April, you are most likely sitting on an incredible interest rate, and should in no way be kicking themselves for refinancing at that time.
Keep in mind that refinance rates could have just as easily climbed significantly over the past few months. A better economic picture in Europe, a stock market climb, or any hints of inflation would have put an end to the drop in refinance mortgage rates.
On a macro economic level, things are still up in the air. The jobs picture is still in very tough shape in the US, while foreign economies continue to reel with sluggish growth. The US housing market appears to be slumping once again and there is a real worry that all of this uncertainty could cause Americans to cut back on spending. There has been talk of a double-dip recession, but I still think that it’s too early to tell.
Well, enough of the economic doom and gloom, because refinance mortgage rates are as low as they have ever been! Homeowners that are looking to refinance can get some incredible low rate and low closing cost deals right now. You will most likely need to have a middle credit score of at least 620 and enough equity in your home to make a loan work, so make sure to get a good grasp as to the value of your home when shopping refinance rates.
Credit scores and home values have been the biggest cog in preventing homeowners from refinancing into the current great rates, so it’s always good to know going into the process, where you stand.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
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