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Refinancing Now Is a Good Idea!

By
Real Estate Agent with Casta del Sol Real Estate / HomeSmart Everygreen Realty 01439520

Interest rates are at a 65 year low, below 5% and home owners are going to lenders to refinance. Banks are being deluged with applications. Marshall Boyd co-presdent of Southwest Bank Mortgage and founding managing partner of William Trew Real Estate Services says he has been though other refinancing crazes but this is the most significan he has ever seen. The number one reason is this is the lowest interest rates have been.

In March rates were again lowered due to the fact that the Federal Reserve is commited to buying up 1.2 trillion in mortgage backed securities and 300 billion in goverment debt.

But the lower rates require that the property owner has a strong credit rating, low debt ratio and at least 20% equity in their home. There are costs to refinance that are unaviodable including origination fees, tittle fee and lenders fees. Refinancing fees run on average about 2.5 to 3% of the loan value.

Refinancing can help home owners that plan to stay in their home for longer than 2 years and can lower their rate by at least 1%.

The bottom in rates will remain as long as there is no good news. It will go up as soon as housing market show improvement.

Posted by

Valorie Stover , Specializing in YOU!

Comments (2)

Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

So many people in our market are unable to take advantage of the great current rates because their homes will not appraise at a level where they have 20% equity.  Sad.

Apr 14, 2009 03:32 AM
Valorie Stover, Realtor for Casta del Sol
Casta del Sol Real Estate / HomeSmart Everygreen Realty - Mission Viejo, CA
Mission Viejo,CA, Active Adult Community!

It is sad for the ones that had the 20% and have lost it.

Apr 20, 2009 06:04 AM