Everyone would like to know where the mortgage interest rates will go in 2009. Right now, mortgage rates are near all time lows all over the country. A lot of markets have interest rates which are under 5% for a 15 year fixed rate home loan. Always remember though that the only homeowners who will be truly able to get the lowest home loan interest rates have both 20% cash down, and a good FICO score of over 700. Typically, a 5.25% interest rate is the average that homeowners right now are getting, but that will change. However, many homeowners will still be able to benefit by getting a home mortgage refinancing or loan modification.

Mortgage Rates in 2009
It is impossible to be 100% sure when predicting mortgage rates, but I think I have a good idea of what to expect. I know that refinancing and home loan modification applications are flooding mortgage lenders and banks with paperwork. For this reason I predict that home mortgage rates may increase by .5% to around a 5.75% national average. This will be in part, to help the mortgage lenders and banks catch up and deal with the hug e new crop of homeowners looking for refinancing or loan modification thanks to Obamas “Making Home Affordable” plan.

So, my prediction for mortgage rates is a .5% increase followed in months after with a consistent decline in mortgage rates until they drop to 4.5% for the national average. This means that even though now rates are slightly higher than I think they will get too, homeowners who are facing foreclosure or defaulting on their mortgage should take action now and get a home loan refinance or modification.

When refinancing always get any quotes written down on paper from potential mortgage lenders and banks. The promises that are made verbally are meaningless until they are on paper. This way you can help ensure you are getting the best deal possible.

-M Petrone

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