The key to saving money when refinancing a home loan is knowing when and how to get the absolute lowest mortgage interest rates possible. With that said, there is some great information that can help us get a good idea of what to expect from interest rates in 2010 Here are my mortgage interest rate predictions for the rest of the year.

Many homeowners know that right now interest rates are near all-time lows. A typical 30 year home loan can have an interest rate that is as low as 5%. This is significantly lower than what rates were just 10 years ago. This provides a great chance for many people to refinance or modify their home loan and save money. However, I do not think that interest rates will remain this low for this long.

I predict that throughout the rest of the year mortgage interest rates will slowly rise. Ultimately, I predict that mortgage interest rates will increase by 1.75%. Rising interest rates are a good indication that the economy is recovering, but this increase will make refinancing a mortgage not so beneficial for a lot of people. While 1.75% does not seem like a large amount, it is. This quickly adds up when applied to a 30 year high amount loan like a mortgage. This increase will be big enough that some people will not be able to benefit from a refinancing. Even if homeowners can still benefit, the predicted mortgage rate increases will make refinancing a mortgage cost more for everyone.

I think that the economy and especially the housing market have seen their worse days. This means that lenders and banks will slowly start to increase interest rates as demand climbs in the housing market. Many homeowners should take action now before these predicted increases take place. Refinancing a mortgage now will help ensure you get the absolute lowest interest rates possible.

-M Petrone

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