Mortgage rates are the key to getting the best refinancing possible. If you are able to get a lower interest rate, you will be able to save money and get more affordable monthly mortgage payments. For most of 2009, mortgage rates have been low, however I think that will change. Here are my mortgage interest rate predictions for 2010.

Right now, a typical fixed rate 30 year mortgage can be obtained for around 4.99% in interest. While this is still very low, earlier in the year rates were .3% lower. However, it is only this low right now because of market conditions, a struggling economy, and mortgage bailout plans from the Government. With so many homeowners having a hard time with finances, interest rates needed to be reduced to their present levels to stimulate the housing market. Also, low interest rates have given many homeowners a way to save their home from being lost by refinancing the mortgage into a better, more affordable, monthly payment. However, I expect things to change. Here are my mortgage interest rate predictions for 2010.

I believe that around April of 2010, mortgage rates will increase. While it will not be anything drastic, it will be enough for homeowners to notice. I think that interest rates will rise by around 1.25% or so, which would mean a typical home loan would be at a 6.2% or so. This is still much better than rates were just 5 or 10 years ago, but will be a big enough increase to make refinancing not a beneficial thing for many people. I think that the rates will increase due to a rebounding housing market, and a recovering economy. While I do not think things will be as prosperous as they once were, I do think 2010 will be a huge step in going back to a stable housing market and economy.

Homeowners who are looking into mortgage refinancing should consider making the move sooner rather than later. Getting help and good interest rates is easy. Contact a mortgage lender or bank today and see how much you can save in interest every month on your home loan payments.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner