Recently, the government is doing everything they can do to jump start the economy. Because of this mortgage rates have plunged to under 5% in many locations in less than 12 months. People who bought a home just 2 years ago stand to save hundreds monthly by refinancing into one of the ultra low rates that are everywhere.
To help try to correct the housing market, the Federal Reserve spent billions of dollars in an attempt to stabilize Fannie Mae & Freddie Mac to try to help keep alive mortgage lenders. The Federal Reserve also borrowed lots of money to banks at an extremely low interest rate, closer to 0% than 1%, which in theory should have let banks continue lending at low rates and should kick start the economy. It has been working so far to an extent. Mortgage refinance applications are skyrocketing across the country. Although it is near impossible to predict what direction the mortgage rates will go this year, it is fact that right now is near an all time low for mortgage interest rates. These rates will most likely go up sooner than they will go down anymore. A refinance can help your financial position out now while preparing for any future financial situations. Or, if you are in a fixed rate mortgage now, you should consider refinancing into a stable fixed rate mortgage. Some major companies think that 2009 will be much worse than 2008 as far as housing is concerned. Lock in those super low rates now with a refinance.
It is a good idea to refinance now while rates are low, and not have to worry about in the future when these rates inevitably creep back up. A lot of homeowners have also seen the value of their homes drop in recent years. This is yet another reason to refinance a mortgage. Be sure to do a lot of research on potential lenders. Use the internet to check their websites, rates, terms, or any other factors that may be important to you. If you ever have any doubts about a mortgage lender, walk away. There are plenty of lenders out their willing to work with you in a home refinance situation.


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