Home loan interest rates are the key to saving money on your mortgage. Homeowners who refinance would benefit from knowing when the lowest rates of the year will be. Well, here I will predict mortgage interest rates for the remainder of 2009, and a few months into next year.

Although mortgage interest rates are pretty low right now, rates are not at their lowest. Right now, a homeowner with a 30 year fixed rate home loan can get an interest rate of around 5.19% for a fixed rate mortgage. Make no mistakes, 5.19% is a very low interest rate, and that rate can save homeowners everywhere a lot of money. However, it is not the lowest interest rates have been, or will be.

I predict mortgage interest rates to drop .5% or so. This will bring average mortgages to around 4.69% interest rates, and save a lot of homeowners a lot of money. When the rates drop to their prior lows, like I predict, the rush to refinance will be on. Last time mortgage rates were that low, they had to be increased to ease the rush of homeowners looking to take advantage. I think that around October of this year, mortgage interest rates will drop, and this rate drop should last through April of 2010 or so.

Mortgage rates are the key in saving money through a refinance. The lower the rate, the less the monthly mortgage payment will be. Also, do not risk waiting for a rate drop if you are in financial hardships. The longer you wait, the harder it will be to recover. Make sure to take action if you need to, otherwise wait for the expected rate drop.

-M Petrone

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