Interest rates - what to expect in 2011

Mortgage and Lending with Augusta Financial

Interest rates have been increasing since early in November 2010 and most of what we have seen is due to an overreaction to any piece of economic news.  It actually makes me laugh that some of the bond traders truly believe that we are in the midst of an economic recovery.  REALLY?  Was I asleep when the economy recovered?  I have been in the mortgage industry for over 20 years and when it comes to interest rates I know one thing.  The markets will overreact to everything.  When interest rates were going down they went down fast because the traders reacted to it.  Now that interest rates are climbing they seem to be going up every day because the traders are overreacting. 

If you are thinking of refinancing or purchasing a new home should you hold off and wait for interest rates to get better?  If you are purchasing you should not wait!  The market is coming off a few slow months and sellers are eager to negotiate.  Get a loan with no points and refinance to a lower interest rate when interest rates go lower.  A good lender will always be able to offer you loans with no points and no fees when you refinance (some restrictions apply.) 

If you are considering a refinance to lower your interest rate, then you should refinance when it makes sense.  If your interest rate is currently at 5.25% today, and you can lower your interest rate to 4.875% with no points and no fees then you should do it!  When interest rates drop down to 4.50% then you should refinance again.  If interest rates hit 4.250% with no points and no fees then you should refinance again! 

There is no reason to wait for the lowest interest rate when you can refinance with no points and no closing costs.  I have helped thousands of people refinance their homes to lower interest rates over the years and I always advise them to do the no closing cost loans.       

Please let me know if you have any questions about interest rates, housing or what we can expect in 2011. 

Mike Meena

Augusta Financial - President

661-291-2222 /800-223-5363


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Mike Meena - Augusta Financial 

Direct  -661-291-2222 / Cell -661-714-6258 / office - 661-260-2970 / Email -

I have been one of the top loan officers in California for the past 10+ years. Last year I closed over 450 loans which is nothing in comparison to what I was able to accomplish when the guidelines were easier in the early 2000's. I have been in the mortgage industry since 1990 and my job is to make sure that my clients and my loan representatives clients are given the best loan experience ever. We are a service based mortgage company which means we will close every loan on time! We have 20% more staff than most mortgage bankers our size so we can simply get our clients files through faster than anyone. Our reputation is on every file, so we have to close every loan on time! We currently have our main office in Santa Clarita California, and we also have offices in Lake Forest, Burbank, and one coming soon to Sherman Oaks. We are accepting applications for loan officers and also accepting applications for new branches. Please contact me if you are interested in learning more about Augusta Financial! 

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