Many homeowners are considering getting a mortgage refinancing or modification in order to take advantage of low interest rates. Everyone knows that interest rates are a key to what monthly payments, and overall cost, are. Here are my mortgage interest rate predictions for the rest of 2011. Homeowners who get an interest rate that is even just 1% lower than they have now can save a lot of money every month, and even more overall.

Right now, mortgage rates of 3.75% for a 30 year fixed rate loan. That is near an all time low, and much lower than most homeowners are paying now. Even including closing costs, homeowners who are able to save 2% or more on their home loan will see dramatic reductions in their monthly payments. Sometimes they will even see a reduction in payments, and in the amount of total payments. Many benefits exist for homeowners who are willing to refinance and take advantage.

Rates are low due to government incentives that are keeping the housing industry afloat. Many homeowners are struggling, and new home prices are barely changing from year to year. This has however lowered interest rates to a point where I do not think they will get much lower. I think that home loan interest rates may even fall to 3.5% or so before the end of the year. After that though, I speculate that home loan interest rates will rise to somewhere around 3.9% or 4% by the start of 2012.

Homeowners looking to get a mortgage refinancing should pull the trigger now and take action. There has not been many times that refinancing a home loan would benefit most homeowners. This is one of them. Contact a mortgage lender or bank today to see what home loan refinancing options exist and how much you can save due to record low mortgage interest rates.

-M Petrone

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