Home Mortgage Refinance Rates on the Move Again - Rates to 6%?

Submitted by theStockMasters... on Sat, 08/08/2009 - 16:03

Tags:

Housing, Mortgages & Money

If you have been thinking about refinancing or getting your first mortgage now would be the time to do it. If you wait a few months or even a few weeks, you might be looking at mortgage rates in excess of 6%. These would basically make it pointless to even go through the refinance
process at all Bottom line -- get your refinance on if you haven't already.

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RATES ON THE MOVE
Home mortgage refinance rates moved up greatly this week. At the end of last week the 30 year mortgage interest rates were at 5.05%. Many analysts were predicting that mortgage rates were going to drop below 5% and we were going to see another “refi boom.” Well, the exact opposite happened.

Treasury yields started a strong up trend this week and they pull mortgage rates up with them. In three short days mortgage rates moved from 5.05% all the way up to 5.45%. Will this continue into next week? Only time will tell.

In a mortgage refinance transaction, you get rid of an old loan and replace it with a new one. You can save money in the process but there are some risks and costs involved as well. People usually refinance their existing mortgage to get a better deal in terms of lower interest rate or a safer long term loan.

Step one is to compare your current loan with the new one. Refinancing your mortgage does cost money. If you can get a better deal on paper, be sure to ask for costs that are associated with getting a mortgage refinance. There is no such thing as no cost mortgage refinance. Please be sure to read the fine print on your current home loan and identify any penalties for opting out of the mortgage early.