Saturday, November 14th, 2009 at
4:09 pm
Always remember that predicting anything to 100% accuracy is nearly impossible to do. However, using some information from mortgage interest rates, and their trends, I think we can make a pretty accurate mortgage rate prediction for 2009.
Early in 2009, mortgage interest rates were at near all time lows. Mortgage interest rates of 4.69% for a standard 30 year fixed rate mortgage were easy to be found. Homeowners who got into an ARM loan may have been paying as low as 4%, for awhile at least. However, with the Obama stimulus plan in effect, and homeowners everywhere looking to take advantage of these low rates through refinancing and mortgage modification, something had to be done.
As a result, mortgage rates were increased by .5% across the country to stop the mass amount of homeowners applying for refinancing and loan modification. While this rate increase halted homeowners looking to save money, it was not a big enough increase to stop homeowners from losing their home to foreclosure and mortgage default.
With that in mind, my mortgage interest rate predictions are that around October of this year, interest rates will drop to their prior lows of around 4.69% for 30 year fixed rate mortgages. This is because by that time, the lenders and banks would have been caught up with the pending refinancing and mortgage modification applications from before and looking for more business. The interest rates will be lowered to spark interest of homeowners looking to save money, or their home. Once they become overwhelmed with applications, interest rates will spike up again a little. I do not think that home loan rates will raise much from 4.69% until April of 2010. However, anything can happen.
Homeowners who are facing immediate financial problems, or are going to lose their home, should act now and do something about the problem. Homeowners who can wait a little, should, and see just how mortgage rates will go. Like I predict, around October of this year, rates will drop a little.
By: Michael Petrone
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Friday, November 13th, 2009 at
8:59 am
Many home owners often find themselves in a financial bind making the home loan difficult or hard to pay on time. This is a bad place to be for anyone because late mortgage payments will drop your credit score and cause you to have to pay late fees that can add up very quickly.
Negotiating Late Payments With Mortgage Lenders
The first thing that you as a home owner should do when you know your are facing financial problems is call your mortgage lender or whoever services your loan and workout a repayment plan or payment modification. The last thing your lender wants is your house back, most lenders will work out some sort of plan with you in order to keep your credit score safe and your home out of foreclosure.
What Should You Tell Them
Explain to the lender in detail what caused the circumstances you are now in and what if anything you are doing to work yourself out of the mess. You should also provide them with a time frame of how long you think it will take you to get back on your feet financially.
In a rare instance they may chose to do nothing for you but as long as you have been a good paying customer that is very rare. In most cases they will more then likely either adjust your payment for a period of time to allow you to catch up or even allow you to skip a payment or two.
However you must keep in mind that you still owe the money and it will be added to the term of the loan. So if you skip two months payments your loan will be two months longer in the end.
If they reduce your payment amount down they will generally want you to make it up within a years time by adding an extra amount to your payments after you get back in control.
If you are struggling as a direct result of an adjustable rate mortgage increasing the lender may offer you a fixed rate or give you an extended fixed rate period on the ARM. Changing the loan terms of a mortgage is referred to as a loan modification and is currently quite common.
By: Darin Sewell
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Sunday, November 8th, 2009 at
9:40 pm
Mortgage rates are the key to a homeowner being able to save money when refinancing or getting a home loan modification. The lower the interest rate is, the more you will save. Here, I will predict mortgage rates for the rest of 2009, and the first part of 2010.
While it is impossible to know 100% where mortgage interest rates will go, I think we have some good information to make a guess with.
I think that mortgage interest rates will drop to 4.69%, a .5% drop from the current average rates. Now this may not sound like a lot, but you must consider that interest rates are already extremely low, and 0.5% off of that, makes rates their lowest ever. I think that this will happen in October of this year. I also think that these rates should last until the middle of April 2010.
Mortgage rates are so low right now because of the struggling housing market. Mortgage rates are low to encourage growth, and restore some consumer spending in the housing market. However, another advantage of rates as low as there are now, is refinancing. Mortgage refinancing can easily save a homeowner hundreds of dollars on their home loan payment every month.
Mortgage interest rate predictions are not always exactly accurate. Homeowners should not rely on getting a lower rate in October, although I do expect it. However, interest rates are very low right now too. Mortgage refinancing would still benefit millions of homeowners, even at the not yet reduced interest rate. Otherwise, homeowners who are able to wait, should. If you can get a home loan at .5% off current interest rates, you will save a lot more money.
When the rates drop, and I think they will, you should look into refinancing your mortgage.
By: Michael Petrone
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