Considerations For Finding a Low Refinance Mortgage Interest Rate [mortgageloan-processor.blogspot.com]
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Is a Refinance Right Now Worthwhile?
You may have been excited to hear about President's Obama's "Making Home Affordable" package that recently passed through Congress. Of course this refers to a plan to help out homeowners who are struggling to make their mortgage payments with a reduced income. This could be a great boon to some homeowners, but may not help others.
There are some requirements to qualify for this plan. These include a mortgage payment that is at least 31% of your monthly income, your loan status being current and never more than 30 days past due anytime in the prior twelve months, and the ability to submit a financial hardship statement. If you financed your home with Fannie Mae or Freddie Mac, you are also eligible for Making Home Affordable.
But if you are one of the thousands of Americans to whom these conditions do not apply, then you will not receive that low 2% interest rate by refinancing.
In fact, it may not make sense for you to change the terms of your mortgage right now.Try putting your figures into an online mortgage payment calculator and this will give you a better idea if refinancing is worthwhile at the present time. You will need to know your current loan balance and interest rate, as well as the rate of your new mortgage. You will also have to input the term of both your current and future loans.
Remember that the payment amount returned by these calculators is just an estimate. Unless you know the points and any additional fees you will have to pay to refinance, it is merely going to give you the principal and interest amount.
Finding the Lowest Mortgage Refinance Interest Rate
If you are determined to wait until the best interest rate is being offered by your lender, you will have to exhibit some patience and keep a daily watch on overnight mortgage rate changes.
The rate has remained stable in recent months, but that is bound to change at any time. You must be prepared to start the paperwork when the rate hits your target low.Some people are under the misconception that mortgage refinance interest rates follow the prime. This is not true. As a matter of fact, mortgage rates are bound to go up when the prime is cut. Supply and demand also play a factor in the fluctuation of the rates.
In a bad economy, the Feds often lower the prime rate in order to stimulate borrowing. This causes prices to increase, often resulting in inflation. Inflation lowers the value of mortgage bonds, and this is what prompts lenders to increase the rate of interest on mortgages.
There is a lot to understand and follow when it comes to finding the lowest refinance mortgage interest rate. You may want to find a reputable company who can find a loan that will best fit your circumstances and can alert you when your target rate is available. This could be the smartest course of action right now.
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