Finding the Lowest Refinance Mortgage Interest Rate [mortgagegoal.blogspot.com]
People should shop around: Small lenders may offer interest cheaper rates than the nation's largest banks that may have higher overhead costs, said West Palm Beach mortgage banker Adam Cohn. Miramar-based Tropical Financial Credit Union, ... Snagging a low mortgage rate requires steady paycheck, good credit
Secretary of Housing and Urban Development, Shaun Donovan answers questions from the press about President Obama's plan to help families who are having trouble meeting their mortgage payments. Donovan told the press: "There were a number of pieces to what the President talked about today, but most importantly, he talked about middle-class families who have been playing by the rules, doing everything right, paying their mortgages on time, and have not been able to benefit from record-low interest rates. Through strong administrative action, as part of our We Can't Wait efforts across the administration, last fall we took very important steps to open up refinancing for Fannie Mae and Freddie Mac borrowers who are underwater. But today we still have too many families who may live next door to a family that, just like them, is paying their bills on time with their mortgage, and only because they have a Fannie Mae or a Fred die Mac or an FHA mortgage, they've been able to lower their bills by an average of 00, and as a result help not only themselves, their neighborhood, but also the economy more broadly. And yet we have other families who are in exactly the same position, been responsible, and yet because they don't have a Fannie Mae or a Freddie Mac or an FHA mortgage, have been unable to benefit from the lowest interest rates in half a century. As the President said in his State of the Union, we need to get back to American values that are about everybody being ...
mortgagegoal.blogspot.com Housing Secretary Outlines Obama Mortgage Refinance Plan
Does Refinancing Right Now Make Financial Sense?
A lot of Americans are excited since President Obama passed his "Making Home Affordable" plan as part of the economic stimulus package. The requirement that lending institutions offer a 2% interest rate to those hit hardest by the failing economy and a loss of income is indeed something to get excited about. But do you qualify for it?
The fact is that you must be eligible for this great low rate. Your mortgage payments must be current and you cannot have fallen past due for more than 30 days in any month from the previous twelve. The payment for your mortgage needs to be 31% of your monthly income or higher, and you need to prove your financial hardship. If your mortgage was written by either Freddie Mac or Fannie Mae, you are also eligible for refinancing at the 2% rate.
If none of the above applies to you, then you must refinance at the prevailing rate offered by the lender.
Sometimes the difference is not great enough to make good financial sense. Consider finding an online mortgage payment calculator as a way to help you decide.You will find lots of them available on the internet. Before your new payment can be calculated, you will need to know how much you still owe on your current loan, the length of the mortgage, and the interest rate charged. You will need the new interest rate, as well.
Bear in mind that this figure will not be totally accurate unless you know the amount of any fees or points that must be paid to refinance. Even without these figures, however, the online calculator will give you a good indication if refinancing is even a viable option in your circumstances.
Plan to Find the Lowest Mortgage Refinance Interest Rate
Finding the lowest mortgage refinance interest rate is going to require a bit of effort on your part.
You may want to subscribe to an online service that alerts you of overnight rate changes. When the mortgage interest rate gets down to an acceptable low, then you will have to act fast to ensure it is locked in on your loan.The prevailing mortgage rates can fluctuate quite a bit. This is based more on supply and demand than it is on the prime rate. If demand is low, so will interest rates decrease, and vice versa.
Consider the Federal Reserve's role in changing the mortgage interest rate. The prime rate is often lowered in order to stimulate a sluggish economy. The expectation is that borrowing, and spending, will increase. Vendors know that this is the time to raise the prices on goods. As inflation occurs, mortgage bond values decrease. Mortgage lenders, then, raise their rates to cover the loss.
There is a lot to be aware of when seeking the lowest possible refinance mortgage interest rate. Most homeowners do not have the time or skill to do so. You may prefer to work with a reputable company that can find the best loan product for you, and let you know as soon as the interest rate becomes low enough to make refinancing worthwhile.
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