I am sure you have heard on the radio or seen on television that mortgage rates are at historic lows. Many times, those statements do not contain any information on the right price. There are many reasons for this, but mainly the reason is due to a change in regulations which make it very hard to disclose an overall interest fee without a lot of additional and frequently confusing disclosure.
Lately, I was watching my morning news, and the commentators suggested that the stage “historically low-interest rates” has been so overused it dropped its impact with consumers. This analysis could be correct since rates are historically low and yet the mortgage industry, though seeing a slight growth in refinances, continues to suffer. Based on the fact that we are in historically low-interest rates loan officers should be writing a lot more loans. snabb lån
So what do historical low levels actually imply? Well, FreddieMac was tracking the regular mortgage rate in the United States since 1971. They report monthly on the average speed throughout the nation, in addition to the average cost (points) to obtain the loan. Bear in mind this is only an average, and regional differences do exist. Annually, the take the 12 month average of their yearly average rate to come up with their annual average. This means that this year (2011) there are 40 decades of historical data accessible through FreddieMac.
To put things in a little perspective, I started from the banking industry in 1981 (composed my first home mortgage program in 1985). When I entered the business, rates were almost 20% to get a thirty year fixed rate loan! I opened my mortgage business in 1989 when rates were still above 10% to get a thirty year fixed rate loan. I remember developing a flyer to get the Realtors I solicited the afternoon prices broke the 10 percent mark. The flyer’s headline was “Single Digit Interest Rates!”
The information was last updated on June 30, 2011, representing the average speed to be under 5 percent. What this signifies is that anyone who got a mortgage loan within the past 40 decades, if they refinanced the loan later or not, hasn’t seen rates this low. Since June 30, 2011, rates have continued to fall. Also, keep in mind I am only referring to the history of 30 year fixed rates. Interest rates for shorter periods, such as 15 years, are even lower.
Does this make sense to refinance your present loan? Based on your current interest rate, you could save tens of thousands of dollars over the next thirty years by refinancing. Today it isn’t merely the simple fact that interest rates are so low and you can decrease your monthly payment. Unfortunately, factors such as your current house value, your credit rating and history, job stability and application restrictions and availability all come under consideration.
If you’re a home owner, consult with a mortgage professional about the programs available to you. By assessing your particular situation with a mortgage specialist, you’ll be better prepared to make any decision on whether or not now is your time to consider refinancing your home. These charges won’t remain this low forever, so if you don’t sell your home, you will be paying on your mortgage loan for 30 decades. Now may be the time to think about taking advantage of those historically low rates of interest! låna pengar låg ränta
James Campanella is a twenty-five year veteran of the mortgage lending industry.