A very popular question from homeowners recently has been, “What are the Mortgage Rate Predictions for 2009?”. Right now, interest rates on home loans are near all time lows all across the country. Mortgage rates can easily be found at under 5% for a fixed rate 30 year mortgage. Remember though that typically only homeowners with a FICO score over 700 and 20% or more in home equity will qualify for a the best mortgage interest rate.

Home Mortgage Interest Rates in 2009
It is impossible to be 100% certain of where home interest rates will head, but I think I have a reasonable idea. My prediction is that due to home mortgage refinancing applications flooding mortgage lenders offices at record paces, that mortgage interest rates may, temporarily, increase. This will help the mortgage lenders work on the massive paperwork they are dealing with, and at the same time increase their profit margin.

Overall, I predict that that home mortgage rates for 2009 will take a temporary .5% increase followed by steady steep declines throughout 2009.

It is generally a good idea if you are looking into refinancing to do it now. Get a locked in quoted rate on paper and you can potentially save hundreds of dollars per month.

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