Mortgage interest rates are currently near all-time lows. This has led many homeowners to try to get a mortgage refinancing to take advantage. However, homeowners should act soon to secure a low interest rate because I predict that in 2010, home mortgage interest rates will rise. Here are my mortgage rate predictions for 2010 and how I made them.

Homeowners are saving a lot of money, and protecting their homes future, by refinancing their home mortgage with Obamas stimulus plan. This stimulus plan enables millions of people to easily get approved for a mortgage refinancing, regardless of any financial problems they may be facing. Over $75 billion is being used to keep interest rates low, and to provide cash incentives to mortgage lenders and banks that help homeowners with Obamas stimulus plan. However, these programs will end as the economy and housing market start to recover, which they have.

Since the overall economy and housing market are slowly improving, mortgage interest rates will rise as a result. While this is good news, it means that refinancing a mortgage will cost more money, and may not even be beneficial for some homeowners. However, my mortgage rate increase predictions for 2010 are not horrible news.

I think that mortgage interest rates will rise by around 1.75%-2% total throughout 2010. This is not a huge increase, but will reflect the economy and housing markets comeback. While many people will still be able to benefit from refinancing a mortgage after these predicted rate increases, some homeowners will not be able to get a low enough interest rate to see real savings. Rates will rise as lenders and banks realize that less homeowners are struggling, and when the foreclosure and default rate lowers. This is already happening because of the Obama stimulus plan, new easy to qualify for mortgage refinancing options, and extremely low interest rates.

Homeowners should take action now and contact a mortgage lender or bank. Do not let your home, or more money, be lost to a bad housing market. Do something about your situation and take action.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner