A Cheaper Mortgage – Now Could Be The Time

A CNN story points out that Falling interest rates are leading to a rush to get cheaper mortgages.  There is a mortgage refinance frenzy as homeowners rush to reduce their housing payments.

The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.  Mortgage applications were up a whopping 48% last week, according to the MBA and more than 80% were from homeowners looking to lower housing costs.

Who should refinance their mortgage?

The following mortgage borrowers should consider whether now is the time to refinance their mortgage:

• Anyone with high adjustable-rate mortgage loans.
• Those who would lower their mortgage rate by a percentage point or more.
• Those who are planning to stay in their homes for a while.
• Borrowers with significant equity in their homes.
• Borrowers who don’t think mortgage rates will decline much further.

Borrowers must weigh the advantages of gambling on mortgage rates turning around or locking in savings at the present very low rates.