Do you have an adjustable rate mortgage (ARM) coming up? Now would be a good time to lock in a 30 year mortgage or 15 year mortgage at these historic low mortgage rates. Adjustable rate mortgages are also low these days but you run the risk of having to refinance again at a later date when rates might not be as low anymore.
30 year fixed conforming mortgage rates are around 5 percent. You can also find mortgage rates under 5 percent at certain banks and lending institutions. 15 year mortgage rates can be had for under 4.5 percent, an even better lock if you can afford the extra mortgage principal payments each month.
If you are a homeowner who has good credit, payed your mortgage on time but are not able to refinance to take advantage of today’s lower mortgage rates because the value of your home has decreased? Well you can still refinance into a fixed rate mortgage. The Making Home Affordable Refinance website (government site) will help borrowers whose loans are held by Fannie Mae for Freddie Mac to refinance into a more affordable mortgage.
You can refinance up to 105% of the value of your home. You mortgage payments must be current on your existing mortgage.
Author: Monitorbankrates.com
April 28th, 2009
