Many people considering a mortgage refinance should not wait too much longer to do so. That is because right now interest rates are near all time lows, and I predict that will change. Here are my mortgage interest rate predictions for 2010 and how I made them.

I predict that starting in April of 2010, home interest rates will start to rise. I think that ultimately, by the end of 2010, mortgage interest rates will have risen by 1.75%. The increase will be in smaller amounts throughout they year. Expect bi monthly increases of anywhere between .25% and .75%. While this does not seem like an enormous set back if you are planning a refinance, it actually is. This small interest rate increase adds up to a lot of money quickly when it is applied to a large loan over a long period of time. This will also make mortgage refinancing a not good deal for some people due to the increased expenses.

I think that mortgage rates will rise do to an improved economy, and a better, more stable, housing market. This means that less people will be losing their homes, and property values will stabilize or rise. While the recovery may be slow, it will be a recovery. While this is good news overall, it is bad news for homeowners who are looking to refinance a mortgage. This will lead to the predicted mortgage rate increase, and cost anyone looking to refinance more money. This does not mean that refinancing wont be a good move, it just means it will be more expensive, regardless of your financial situation.

Homeowners should take action now and refinance a mortgage today at the near record low interest rates. Odds are, the longer you wait, the more it will cost you. Do not wait any longer and take advantage of the offers available now.

-M Petrone

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