Homeowners could really benefit from knowing what to expect form mortgage interest rates in 2009. By getting a home loan, or when trying to get a mortgage refinancing or loan modification, at the lowest interest rate possible, you are saving your self hundreds of dollars per month. Here, are my home mortgage interest rate predictions for 2009, and how I made them.

Home interest rates have recently been increased by .5% or so all across the country. I expected this and accurately predicted this would happen. I think the recent interest rate increases were a result of mortgage lenders, banks, and brokers, being overwhelmed with a massive flow of paperwork from homeowners looking to refinance or get a loan modification, at a then all time low interest rate. That rate of 4.69% was so low that homeowners not only trying to save their home from foreclosure, but those just trying to save money, were all applying. This modest .5% interest rate increase is not large enough to prevent most homeowners from saving their home, but they were enough to make homeowners looking to save money to reassess the situation. However, things will be changing, and sooner than later.

I predict that around the middle of October this year, home interest rates will again be lowered by .5% to their prior all time low of around 4.69%. This will be around the time that mortgage lenders, banks, and brokers are caught up with the massive amount of applications they got, and have dealt with. They will now be hungry for more customers to refinance or provide a loan modification to. To spur interest, they will lowering home mortgage rates by .5% which worked before, and should work again.

Homeowners should wait if they can until the middle of October to get their home loan refinanced or modified. However, if you are at risk of losing your home, take action now. Waiting any longer will risk your home, financial future, and may leave you with no options.

-M Petrone

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