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Have you ever wondered what exactly is up with
libo fixed home loan mortgage rates
Home Mortgages: Up, Up and Away!
Refinance NOWbefore its too late
If you havent found the time to refinance your existing home mortgage, its time to take actionlike yesterday! Every time Alan Greenspan, Federal Reserve Board Chairman, opens his mouth, you can bet that the federal funds rates will rise by at least a quarter of a point, or by 25 basis points in investorese. What that means to you is that home mortgages will rocket as well.
A quarter of a percentage point may not seem like much, given that the federal funds rate currently stands at 2 per cent, but a reality check quickly reveals that you, personally, have probably never seen 2 per cent interest on anything in your lifetime. Take a look at your credit card statements. Are you paying 2 per cent on your credit? What about your home mortgage? Without getting technical, theres little correlation between the federal funds rate and home mortgage rates except the direction in which they travel, and right now that direction is headed to the sky.
Youve already missed the opportunity of a lifetime to lock in the lowest rates youll see for the foreseeable future, but you have a little more time to get your hands on relatively cheap money. The window of opportunity is rapidly closing, so if youre going to refinance, you must do it as soon as possible.
Things you may not know about refinancing:
A small rate cut can pay off handsomely in smaller monthly mortgage payments.
Smaller monthly mortgage payments will decrease your tax deduction, because you will no longer be paying as much interest as youve been paying. Factor this in, because its the total savings that matters.
You can and should ask to have fees waived or reduced: application fees, origination fees, appraisal fees, legal fees, points, and closing costs.
If you dont have cash on hand to pay fees, you can get them tacked on to the mortgage, paying nothing out of pocket for your refinanced home mortgage.
If you refinance and shorten the term of a home mortgage, you will pay a higher monthly payment, but youll save a significant amount of money over the term of the mortgage in addition to paying off your home and building equity faster.
Standard mortgage terms run 15 years or 30 years. If youd prefer a term somewhere in between the standard terms, ask for a custom loan and designate a term that works better for you. Find a term that strikes a balance between a term shorter than 30 years and monthly payments lower than those of a 15-year mortgage.
If you cannot get a custom term, settle for a 30-year mortgage and pay more than the monthly payment to pay off the loan sooner. You must also negotiate no pre-payment penalty.
Where to go from here
1. Review your credit record with each of the three credit bureaus: Equifax, TransUnion and Experian. Mistakes are common in credit reports, and you may be surprised at what you find: accounts that do not belong to you, balances that do not match your statements, an identity mistake or worse. Correct any bad information.
2. Compare mortgage rates and fees online among several finance companies.
3. Use a good mortgage calculator. Using refinance calculators is the only way to determine which loan is the better all-around deal.
Work fast, but negotiate hard to make a deal that works for you. The loan company wants your business as badly as you want a better rate.
About the Author
M J Plaster is a successful author who provides information on http://www.home-loans-4u.net/ and http://www.home-loans-4u.net/home-equity-loans.html. M J Plaster has been a commercial freelance writer for almost two decades, most recently specializing in home and garden, the low-carb lifestyle, investing, and anything that defines la dolce vita.
More Useful Resource and Updates on libo fixed home loan mortgage rates
- What an interest rate cut means to you (CNN Money)
The Federal Reserve is expected to cut interest rates today. That would be the ninth consecutive rate cut this year. Here's what this means to your wallet.
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- Exeter Commercial Is Announcing The Formation Of Our Mortgage Modification and FHA Lending Groups (PRWeb via Yahoo! News)
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- Mortgage applications jump 17% on lower rates (CNN Money)
Borrowers streamed back into the mortgage market last week as loan applications jumped nearly 17%, according to a regular survey from the Mortgage Bankers Association.
- Fannie, Freddie Mortgage-Bond Spreads Hit Widest in Two Months (Bloomberg)
Oct. 27 (Bloomberg) -- Yields on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds rose to the highest in two months relative to government notes, boosting home-loan rates.
- Fitch: Loan Modifications Will Cushion Rate Shock on $347B of U.S. Subprime ARMs (Business Wire via Yahoo! Finance)
NEW YORK----The dramatic increase of London Interbank Offering Rates from mid-September to mid-October has reignited concerns regarding payment shock for borrowers of U.S. hybrid adjustable-rate mortgage collateral and particularly subprime RMBS, according to Fitch Ratings.
- Fannie, Freddie Mortgage-Bond Spreads Hit Widest Since March (Bloomberg)
Oct. 27 (Bloomberg) -- Yields on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds soared to the highest in more than seven months relative to government notes, potentially boosting home-loan rates.
- Fannie, Freddie Mortgage-Bond Spreads Hit Widest in Two Months (Bloomberg)
Oct. 27 (Bloomberg) -- Yields on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds rose to the highest in more than two months relative to government notes, potentially boosting home- loan rates.
- Mortgage rates up, loan-to-value falls (Zawya)
29 October 2008 Mortgage rates in the UAE are likely to rise further due to the liquidity strain, while the loan-to-value (LTVs) ratio is expected to further decline, a report said.
- Good credit? Home loans no longer a sure thing (USA Today)
The new, dynamic landscape of mortgage lending today is a world in which even those with good credit are having trouble getting mortgages or the loan terms they want. Buyers and properties are being forced to go through extra scrutiny.
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