Friday, June 5, 2009

Daily Mortgage Rates Going Higher?

Over the last two weeks we have seen mortgage rates tick upward almost .1%. While this may not seem like a big deal; it is if you have a loan with the value of $300,000 or more. Many home owners are trying to time the exact bottom before refinancing but this is not the best idea. If you feel you are talented enough to time the bottom of any financial market, it is likely you would be extremely rich from these abilities. While most of us cannot do this, it is smart to refinance when rates are low and you have the ability to get a rate that is pleasing to you.

Overall, you may save some money if you pick the exact bottom on overall rates, but your risk is enormous if you miss with your prediction. If the government feels that the housing market is on solid footing and we have seen a bottom, it is likely that rates could shoot all the way back up to 6% within a matter of months. While this is not likely to happen anytime soon, no one knows for sure with this market. As soon as the government stops buying up all the mortgage backed securities, it is likely we will see a steady increase in mortgage rates.

With this knowledge, it is advisable to start planning for that refinance now. It very likely that you will have an interesting time with the appraisal step so you might as well do it now and get it over with before the housing market takes any more crazy moves.

By: Jesse W.

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