Mortgage Rates Can Only Go Up! Lock In Rates Now!

Mortgage rates are going up!  Now home owners can lock in lower rates.

New lending programs are allowing homeowners to lock in a low rate mortgage before the Fed increases interest rates

Wednesday, August 28, 2013

When homeowners visit the The Easy Loan™ official website, they may be shocked at the low interest rates available to them. Many are also surprised that in less than 2 minutes they can qualify for a low-rate fixed mortgage with no appraisal necessary. Best of all, homeowners who use this free service will be able to compare rates from at least 4 lenders that match their scenario. Banks are anxious to start lending during the upswing of the current housing market and while rates may never be this low again.

Although, an increase in home values is good for the economy, it could also be the end of record-low interest rates. The recent spike in mortgage rates has homeowners scrambling to save thousands over the next several years by locking in a rate today. Many homeowners are just now recuperating from seeing their home values plummet in the past, to finally seeing positive equity, and are concerned they won't be eligible to refinance into a low-rate mortgage before rates begin climbing higher. Some lenders will only refinance homes that have positive equity, yet many homeowners are not sure that the recovering housing market, and their property value, will increase faster than interest rates.

The strengthening economy has pressed the breaks on lowering rates and we will begin to see rates escalate to normal levels now that conditions have improved and the economy is climbing out of recession. The Fed lowered short term rates several years ago to near zero in an effort to expand the economy. Historically, rates on 30 year loans are usually 5.5% and higher. The difference on a $200,000 home with an available rate today at 3.5% versus 5.5% is around $237 a month or $2,844 a year. That’s roughly an $85,000 difference in the life of the loan.

The Fed lowered short term rates several years ago to near zero in an effort to revive the economy and now that we are seeing a recovery it's expected we will begin to see rates escalate to normal levels. Historically, rates on 30 year loans are usually between 5.50%-7.25% and higher. Below is the difference on a $200,000 mortgage for a 30 year term at an available rate today of 3.25% vs 6.75%.

There is good news though, lenders are eager to refinance home loans into low interest mortgages while they are still available. Additionally, new programs have been issued to assist homeowners with low to negative equity. However, not all lenders are equal and not all lenders have access to these loan programs. The best way to find a lender that can offer you a Conventional, Non-Conforming, Jumbo or FHA mortgage is by using an unbiased loan comparison source.