With the government spending money like drunken sailors on liberty, inflation will soon rear its ugly head. And inflation is very bad news for mortgage rates.
After one year of historically low mortgage rates, the window of opportunity to purchase or refinance at an incredible rate may be be ending soon.
What is so incredible about a 30 year fixed rate mortgage at under 5.0%? Well, the average 30 year fixed over the last ten years was about 7.1%. The highest rate for the 30 year fixed in the last ten years was 9.2%. The highest rate recorded by Freddie Mac occurred in October of 1981…18.45%!
Refinancing at a lower rate may save you hundreds of dollars off your current mortgage payment. So it is definitely time to examine your mortgage terms and determine whether or not it is worthwhile to refinance. And if you have an adjustable rate mortgage it is certainly time to make a move.
There are several government programs available to homeowners who have Fannie Mae or Freddie Mac loans and are under water on their mortgages.
For those of you who are considering the purchase of a home, now is the time to pull the trigger. Not only are rates extremely low, you may also qualify for the homebuyers tax credit.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
