Interest Rates Hover at Record Lows Avondale, Buckeye, Goodyear

By
Real Estate Agent with Realty One Group, homes for sale, working with first time buyers
https://activerain.com/droplet/Gt7

Interest Rates Hover at Record Lows


Concerns about the strength of the economy have recently taken Treasury yields to new lows. This, in turn, is causing fixed-rate mortgages to remain low.

Homeowners are taking advantage of the low interest rates. The refinance index recently reached a three-year high. Also, the Federal Housing Administration (FHA) projects to receive 630,000 refinance applications for fiscal year 2012, a 23% increase from the previous 12 months.

The vast majority of refinancing is going into fixed-rate mortgages. The adjustable-rate share of mortgage activity recently fell to 4.1% of all mortgage applications.

At the same time, home prices are increasing. Zillow reported a second-quarter increase nationwide for the first time since 2007. Standard & Poor's/Case-Shiller housing price index is also reporting monthly price increases.

When thinking about refinancing, there are some important things to consider. For instance, if refinancing to a lower rate will save $125 a month, you should then factor in your tax rate. If you're in the 25% tax bracket, the actual savings will be $94 a month.*

Another consideration is how long it will take to recoup your refinancing costs. If the costs are $4,000, it will take 43 months ($4,000 divided by $94) to recover those costs. So even if you plan to move in five years, refinancing is a good option. If, however, your refinancing costs are $6,000, it will take 64 months ($6,000 divided by $94) to recover the costs, which, if you plan to move in five years, would not be a good option.

If you would like to learn more about the current refinancing opportunities, please contact me today.                                                                                            

Posted by


close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Arizona Maricopa County Avondale
Groups:
TSW ~ This Stuff Works!
Tags:
buyers
schools
rancho santa fe
fha
s
goodyear
buckeye
avondale
litchfield park
realestate
cardinals
realator
va
coyotes
homes
diamondbacks

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
294,471

John E. Baldovin

New and Resale Homes, FHA, VA, USDA, Community Pro
Ask me a question
*
*
*
*
Spam prevention

Additional Information