Mortgage refinancing in 2010 will still be beneficial to many homeowners, but I do predict that interest rates will rise making it less beneficial for everyone, and making it not beneficial at all for many others. While mortgage interest rates will remain low, they will rise, and I think I know when and why. Here are my mortgage interest rate predictions for 2010, and how I made them.

Right now a typical 30 year fixed rate home loan can be had for as little as 5% interest. However, that interest rate is so low because of Government stimulus programs, and a weak housing market. When things are good, interest rates rise and lenders and banks can be more picky. However, when the marker and economy is in bad shape like it is, refinancing a mortgage is usually a good move due to low interest rates designed to spur activity in the market.

However, while many homeowners have taken advantage of this great time to refinance a mortgage, things will not be so beneficial in 2010. I think that we have already seen the market and economy bottom out. This means that 2010 will be better, maybe only slightly, financially for homeowners, banks and mortgage lenders. When things are better, and there is interest and demand in the market, interest rates will rise as a result. While the increase will be minimal, it is still significant enough to eliminate the benefit refinancing a mortgage can have for some homeowners.

Homeowners should take action now while interest rates are low, and mortgage lenders and banks are eager to help homeowners. While the increase in interest rates may be only around 1.25%, this will be enough to make refinancing no good for some people. Take action now while rates are near all time lows, and refinance your mortgage.

-M Petrone

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