| Dramatic drop in mortgage rates has stirred | | | | start the housing market and that is what |
| interest in refinancing. According to Freddie Mac | | | | Treasury department is thinking of to help housing |
| 30 year mortgages rates fell to an average 5.47 | | | | market. |
| percent in the last week, as it was the lowest | | | | Many homeowners are doing very smart thing |
| since March 2004. | | | | when they refinance. From paying bills to actually |
| Rates tumbled due to announcement from | | | | putting saving into retirement plans, savings |
| Federal Reserve that it was buying $600 million in | | | | account or anything that can be safe over a long |
| mortgage-backed securities and debt to help the | | | | period of time. |
| market. The sudden rate drop led to a 200 | | | | What is driving rates lower? |
| percent surge in mortgage refinancing applications. | | | | There few factors that have pushed mortgage |
| The 30-year fixed-rate average was 5.47% with | | | | rates lower. Stock market and gloomy economy |
| an average 0.7 point for the week ending Dec. 11, | | | | outlook has triggered government to do |
| down from 5.53% a week ago. Last year the | | | | something and with many actions taken by |
| average was 6.11%.The 30-year average has not | | | | government it moved yields of 10 year treasuries. |
| been lower since March 25, 2004, when it | | | | Will rates jump back up? Yes they will rise from |
| averaged 5.4%, Freddie Mac said. | | | | its lows and sometimes sooner than we may all |
| For some rich equity refinances 4.875 percent | | | | think. If you are thinking of refinancing, now it is a |
| interest rates are common. Treasury plans to | | | | time to do it. |
| slash mortgage rates on new loans as low as 4.5 | | | | Will government plans help boost the housing |
| percent to stimulate home sales. | | | | market? |
| How easy is it to refinance now? | | | | In most cases what everyone can see the |
| You need at least 20% equity in your home, and | | | | impact may not be as big as you might think. |
| with the most challenged market you may end up | | | | Lower rates can help homeowners from |
| needing more than 20 percent. When it comes to | | | | adjustable mortgages to fixed mortgages, but |
| credit scores, a credit score of 720 is needed to | | | | borrowers who desperately need to refinance |
| get lower interest rates. | | | | may not qualify. |
| You must fully document your income and assets | | | | Higher lending standards prevent many to either |
| as well as your debt to income ratio need to be | | | | purchase a home or refinance a home to get the |
| smaller now in a range of 43 percent or lower. | | | | most attractive interest rates. |
| Should you wait for government to push rates | | | | What should I do? |
| lower? | | | | Best approach is to get free mortgage quote and |
| A of today there are many homeowners who | | | | compare interest rate and monthly mortgage |
| can already take advantage or lower rates. The | | | | payment to see where you can save. Many |
| more you wait, the quicker your property value | | | | websites offers such deals so therefore you have |
| may go down, squeezing your equity. | | | | nothing to loose. Once you receive your quote |
| When and if government announced a new | | | | you can simply decide if you are willing to wait for |
| mortgage program, there will be many restrictions | | | | government to do something about mortgage |
| that homeowners need to qualify for. | | | | rates. |
| Mortgage rates would have to fail in order to kick | | | | |