Mortgage rates are at an all time low so the question many homeowners should be asking themselves is whether or not they should refinance?  Last I checked, the conventional and FHA mortgage rates were a little over 5%.  If you are currently paying 6% or more, you really should start crunching the numbers in order to determine if refinancing is worth it for you.  If you think you won't qualify for a refi because you have lost the equity in your home and now owe more than it's worth, you may still qualify.  For instance, Fannie Mae will let certain borrowers refinance with a lower mortgage rate even if their current rate equals as much as 120% of the property's current loan value.  Don't wait too long because there is no telling how long the low rates will stick around.  A a Realtor in the Tampa Bay area, I am keeping my fingers crossed that the low rates will be around for a while.  Lower rates will encourage renters and first time homebuyers to start building equity instead of throwing their money away and buy a home they can call their own. 

Another consideration is refinance vs. purchasing a new home.  It was announced yesterday that the lobbyists in the financial industry are pushing the Treasury Dept. to lower the interest rates for new home sales to 4.5%.  It would be an unprecedented opportunity for anyone who has good credit to buy a home.  If you currently own a home and owe more than what you can sell it for and are considering a refi, maybe you should crunch the numbers to see if buying a new home is cost effective.  If you refi, you have to be ready to remain in the home for many years to come.

If you have any questions, please contact me at info@buytampafl.com.

Looking for a new home? Go to www.buytampafl.com for a list of all available homes in the Tampa/St. Petersburg area.