Interest Rates Remain Exceptionally Low
Posted on | June 20, 2010 | No Comments
Though applications for new mortgages dropped off in May, interest rates continue to be at some of the lowest levels in history. In the good old days, people would be lining up to refinance their current loans at the lower rates. However, things are really different today. First, many who could use the lower rates cannot qualify due to loss of income, job change or ruined credit. They have managed to continue to pay their mortgage but may have let other less important bills lapse or just have some late pays that have really hurt them.
Second, since rates have been low for several years, it doesn’t make sense to refinance a house if you start out with a pretty good rate. You will need to at least get a point better; 6% current rate and 5% for new mortgage, as well as be able to pay all the costs within the next 24 to 36 months. No need to refinance if you plan on moving in the next few years. Just think through the process and, if you believe you can qualify, give me a call.
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