Mortgage rates hit a record low for Home Owners in Poway that want to refinance

Mortgage rates of 4.71% at record low News about a new low in mortgage rates of 4.71 percent have encouraged homebuyers and owners to refinance their Poway Homes. According to the weekly Freddie Mac Primary Mortgage Market Survey the rates were down from last week’s 4.78 percent. This equals the previous record low from April for 30-year, fixed-rate loans with a 20 percent down payment. For example, the latest rate for a $300,000 loan would require a principal and interest payment of $1,558, compared to $1,570 from last week. This does not count origination fees and other expenses such as taxes and insurance. In comparison, last December’s rates were at 5.53 percent, yielding a monthly payment of $1,709. "However, Greg McBride, senior financial analyst at www.Bankrate.com says that there are "no guarantees that mortgage rates are going to stay at these low levels" In order reduce mortgage rates The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities, yet this money is set to run out next spring. This program intends to make home buying more affordable and prop up the housing market for Poway Realtors. Yet, despite the government support, it is still tough to qualify for a loan for homebuyers in Poway. This is because lenders have increased their standards dramatically, in order to guarantee best rates only to those with solid credit and 20 % down payment. As a result, millions of American have still not been able to take advantage of them, particularly in the areas where home prices have fallen the most. The fact that 11 million households owe more on their home loans than their house is currently worth, makes refinancing for Poway Home Owners difficult. But the interesting fact is: Even though many homebuyers are in financial trouble for having purchased at the wrong time and then seeing housing prices drop, others win out of this situation by refinancing. Dave McDonald, president of the local chapter of the California Mortgage Brokers Association, said he has one customer who is swapping his 30-year, fixed-rate loan at 6 percent into a 15-year loan at a lower rate so he pay it off early without raising his monthly costs.