Borrowers, it seems, are taking advantage of the low interest rates to reduce their monthly payments.
Seattle, WA (PRWEB) April 26, 2013
This week, mortgage interest rates have fallen to some of the lowest yet, continuing the trend seen for the last two weeks. This is producing something of a boom in mortgage refinancing, where homeowners who are struggling with their monthly payments are taking advantage of the government backed mortgage refinance program HARP.
This trend of low mortgage refinance rates and readily available assistance through government programs is giving a boost to struggling homeowners who would typically not have a chance at refinancing their homes.
Currently, according to Market Watch, refinancing is making up the majority of mortgages, with about 75% of lending activity. Borrowers, it seems, are taking advantage of the low interest trend to get lower house payments. This new activity follows a trend of steadily increasing strength in the housing market, which is contributing to higher prices and favorable consideration by banks and mortgage companies.
So called “underwater loans” are expected to transition rapidly to positive equity, with a home price gain of over 20% expected over the next several years, according to Fannie Mae.
However, it isn’t all good news, Rate State warns. The housing market is still a shadow of the dynamo that drove the economy in 2006. It is best then, Rate State recommends, to get mortgage refinancing now, when mortgage rates are some of the lowest seen yet.
In order to do this effectively, people need to see exactly what their options are.
Typically, this would be a difficult process, requiring homeowners to go from agent to agent searching for the best mortgage refinancing deals. This can be an exhaustive, trying ordeal, and there is no reason to suggest that people would get the best mortgage refinancing rates. However, it doesn’t need to be this way.
Rate State has built a comprehensive tool, giving people the chance to get the best deals on mortgage refinancing, right from the comfort of home. By simply inputting where their credit bracket is, people gain access to dozens of quotes from lenders who are eager to sign people up for mortgage refinance.